I'd take an S3 over an R32 every day of the week. I love the R32 for VW being brave enough to put a big v6 in a small hatch. The mk4 was a revelation. Over all the other rather awful mk4 variants, the R32 came and blew everyone idea of the mk4 golf out the water.
Then came along the mk5 gti and it did the same. The mk5 R32 didn't go down brilliantly in the motoring press. Heavy and no faster than a standard 200ps gti. Reviews always followed the lines of, a good car with a nice soundtrack, but we'd take a GTI, more nimble, more special.
Bring remaps into it and loads more torque and a lot less weight and the R32 can't compete unless its wet. I for one take it easy in the wet so being 4wd wouldn't make a difference to me.
If someone came along and offered me a no cost swap then I'd think long and hard. But, slower (v's remapped GTI's), thirstier, higher tax, higher insurance and a jaws front end makes it a no brainer for me.
S3 is slightly bland looking pre face lift but with the new wheels and light clusters it's a mean looking car that is really quick, economical, bearable tax and has a far nicer interior than the golf. I'd love one if I could justify the cost of change.
I know people are sad to see the v6 and perhaps 4wd golf's go but it is the demands of the buyer. Truth is, not enough people want a v6 n/a golf, 4 pot turbo's are the way forward for now and vw have to make what will sell. I know it's a bit biased but I doubt there are many people on here that would swap their remapped (or even standard) gti's for r32's.