If I wanted to and could afford to buy a Mark 7, the specification I would want is around £32.5K. This is for a GTD, to replace my current one (which was the best part of £30K - I didn't get a big discount). I wouldn't consider an S3 or an R, not least because I'd probably kill myself within three weeks, and they're a bit showy for me (too many exhausts, for example). I'd also be worried that some lowlifes would break in and steal the keys and make off with it whilst I was asleep.
If I were to change, I don't think I would consider anything other than a Golf, even at that price point. I'm not convinced by the the looks of the 1 series (sorry, Bear!) and the A3 in a comparable spec (S-line) to the GTD is only available with leather seats, which I refuse to have (if I wanted to sit on a cow, I'd wander down to my nearest field), and it looks too much like an estate car (or bus). And Audi are even worse than VW at screwing as much money out of you for things that really should come as standard or be much cheaper than they are.
The Golf is a good-looking, (mostly) reliable car. There's not much wrong with the build quality (rattles aside) and if you're lucky you can find a decent dealer who can service it properly. Tax is cheap, as is insurance (for me, at least). It's fairly anonymous, and a bit of an everyman's (or woman's) car. It's not snobby, showy or pretentious. In that respect at least, it's still a "people's car".