Ok so after some light reading on here(yikes) I decided to give a friend of mine a phone call and ask if he was ok if I drove his R32 to compare it to my GTI.
I was in fact going to compare it to my S4 which I sold a few months ago, but didn't tell him that

Ok so here goes. Hoofed it off the line in the dry, it was already warmed up, so fully dumped the clutch at big revs! Big squeals from the front, seemingly up to about 10mph then it seemed to gain some grip and get the power down. He didnt mind me hammering the car as he's agreed a trade in price and waiting for a BMW M3 (I did try talk him out of it!).
Compared to my standard GTI, I actually found it quite "bland", ok it sounded nicer than the GTI (but no way near as good as the S4 mind you), but a lot less power than I had expected. It has just been serviced for 30k miles, just over 2 years old from memory. It went Ok, but not impressive and after hammering it for about half an hour around the coast roads here, I experianced some twitchiness. The R32 in no way felt as planted, or as powerful as the S4.
I have a "run" I use to test cars out, it's my way home from work, I have been using it for about 7 years so know the road very well. I did the usual run a couple of times and found it cornered with less grip and felt a lot slower than the S4. in fact at some points I actually thought I had either a wheel off the ground, or the 4wd was playing up. It felt too bouncy and twitchy for my liking.
After owning the S4 for 2 years, thrashing it from new and taking it for laps of the "Ring", I feel its a far faster car, the 4WD is far superior and the car much more planted. I wouldn't own an R32, I test drove 2 of them when test driving the GTI and wasn't impressed with it then either. I'm guessing Haldex isnt for me. Hammering the S4 from a standing start, it just launches off and away you go, wet or dry. I can only assume Audi use Quattro as its the better product for their range of engines and superior to Haldex?
TT in this case I'd have to fully agree with you, IMO and limited knowledge of 4WD systems, (but plenty of experiance of driving them), its Quattro/Torsen all the way for me.
Oh and my S4 B7 wasn't FSI, as far as I'm aware the RS4 has the FSI engine, not the S4.
And a RWD car handles better than a 4WD car?, your kidding right? Not a chance. Wet or dry, 4WD is far better. Period.
Still have no idea how the R32 beat the lap time of the S4 mind you (by under half a second if I remember right?), I guess the Stig was busy playing with his heated seats, the S4 was running on low octane or something? I had raced a few R32's, no trouble at all.. the wife actually reminded me I overtook a black one on the 2nd lap I took at the Nurburgring. The owner came over to me for a chat afterwards, (UK owner) and commented how he liked the RS4's. I had to explain that I only had an S4, but had changed the front grill to an RS4 version as I thought it looked better.
