If it's considered a hot hatch, which it is by many who associate the three letters with performance, then it should be matching if not bettering its rivals.
Truth be told, I went down the GTI route only because the S3 was out of my budget. 300bhp is far more attractive to me than 220, however 250 would have been a nice compromise. As it is 220 is just a bit underpowered imo.
In that case, maybe you made the wrong choice if power means more to you? What matters to me is how the car performs in the real-world. According to the Ford website, the ST has 250HP and hits 0-62 in 6.5 seconds, with higher CO2 emissions and worse fuel economy. In VWs defence, I'd say they got the whole point of a "hot hatch" bang on the money. Such a car isn't about raw power, it's about practicality and making best use of the power that it has. VW made a car just as quick, with less HP, lower running costs, and a far better cabin to enjoy it all in.