I've had 4, well 5 really, long story.... Anyway, as a work commuter they are pretty good, should easily get 40 mpg at 60, overall average should be around the 34 mpg mark which isn't too bad. But, they are no rocket ship, so long as you can live with that they are fine. Don't get one without a sunroof or aircon, either is fine but neither is a bugger in the summer. I had an M reg that had neither and it was too hot inside during the summer months, sorry, summer daysÂÂÂ

1.9 TDi, might feel about as quick, possibly very front heavy due to extra weight up front which would affect the handling. I've got a 110 Tdi in a Seat Toledo and its probably quicker than my 8v in a straight line but not on the bends, the Toledo is a bit wallowy and bouncy for that.
They are an evolutionary step forward, not as rewarding to drive as a Mk2 I would guess but safer, bigger and more comfortable. They were designed to suit the growing family man that kicked off with a Mk1 when he was single, got the Mk2 when he got married, Mk3 when the nippers came along, Mk4 when they were teenagers. Now they've left home, he's (or she's of course) free to get back into a more sporty number that retains the comfort and safety so buys the Mk5.
Thats how I see the path of development anyway. Our latest one is a '98 R with Aircon, which is nice in this weather but a pig when it comes to changing the oil.