Didn't the KTM Crossbow have a TFSI lump in it as well?
A local lad had a Lupo with an 1.8T S3 engine in it eons ago. He had a nifty plate on it as well - S3 LPO
Personally I'm all for engine swaps. I even like the Chevy LS swapped 911 on Hoovies Garage. 911 'Porscha vs Porsche' nerds probably hammer their keyboards at such a sight, but I love it
The engine is merely a propulsion method, the rest of the car is what counts. An ED30 engine in a feather weight MK1 is a great idea. It also keeps an iconic car going well into the 21st century with modern performance, emissions, fuel economy and parts availability
I would definitely do something about the brakes though. My MK1's braking was frankly frightening with a 16V lump in it