Hmm, well the MK2 is obviously more iconic and less common - if the money wasn't a factor I'd say go for that for sure, but as the insurance has forced you to an 8v if you want a mk2 then it kinda depends if you want style or performance?
If it were me I think I'd go for the Mk3 16v, as I've got an 8v at the mo and as much as I love it I crave more power all the time!! Also A good example will be easier to find, 'cos as you said there's loads about.
It's not an easy decision by any means though - as I said, style or power - take your pick!