Right, Listen to me buddy!
I had a mk2 1.6 last year. Had cheap coilovers on there but car handles like a kart and for a 1.6 8v it had some decent go. Car was a drivers car. LOVED IT!
I then sold it to buy a mk3 gti 8v. Car is quiet, comfortable, has some pretty good torque, handling is pretty good now the wishbbones are polybushed, and its got new top mounts and ball joints, and car looks pretty good.
But.
Mk2 is much more FUN. If you want fun then buy a mk2 without a doubt. They are extremly fun.
If you want a car to get you to work and back, to hack the daily roads with soft suspension and no wind noise and little road noise, then buy a mk3.
I know (and chuff knows) what car I want to be in come next renewal.