It depends on how you define 'better.' Is 'more practical' better? The GTI can have that tow bar, has a bigger boot, will do more mpg, is cheaper to insure, has a smaller turning circle, less turbo lag, is lighter and therefore will have slightly sharper steering. I decided that all those things make the GTI a better daily driver for me.
However, the ultimate Golf is the Golf R. Being 4WD it has much better traction and is much, much faster.