The mk3 was considered to soft to wear the gti badge.
Don't really need to say any more. It should have been badged GLi
Also, some people say that the mk3 is fat and ugly
That's because it is. Strip one down - the door bars alone must weight more than 10kg, then there's a huge metal superstructure under the dash, too. It looks like VW were caught on the hop by the demands for safety so they just nailed reinforcement in, rather than designing things stronger and lighter. I suspect if you get to work and strip out the tat it'd be a good car, as the basic shell's probably stiffer and not a lot heavier, but you'd need to do so much to get it to that point, whereas the G2 is good straight outta the box and even better when you add ABF fairydust to it.
Andres the 2.0 won't be any more efficient than the 1.8 digi, to be honest, especially not dragging all the tat inside it around, either.
The steel used by VW around this period also seems to have been rubbish - T4 and G3s rust at a rate only previously seen in Fords (not the Alfa super-rate though). Through most of the G2 production the steel seems to have been exceptionally high quality, as per the Audi 100 and others of that era.
The only quality the G3 might have as time rolls on is that not that many were actually made due to poor demand and more limited time production than the previous generation Golfs. Thing is there aren't many Austin Allegros left, but it doesn't mean they've got any better over the years, they've just become 'cherished' by certain bozos, probably for very sentimental reasons.