The 205 is a better drivers car, and in the right hands can out handle any standard Golf, ( I'm waiting for the death threats, but its true!). But of course in the wrong hands the 205 lets you know your a crap driver by throwing you backwards through the nearest hedge. The Golf is far better made and is much more civilised, Its a proper car that is just as happy to arse around town stuck in traffic jams, just as much as pushing the bounderys of throttle induced understeer and lift off oversteer on the open road.
Don't get a Mk3 unless its a VR6, but even then don't expect mental performance, its more like a GT than a proper GTI, ( its too damn heavy.) oh, and don't get a white one. (It looks like a portacabin).