For the money:
If I wanted AWD absolute performance, I'd get an STI.
If I wanted luxo style, German hand built quality and AWD I'd get a 993 C4.
Having owned many VWs and Audis, I have to say that VAG seems able to combine adequate performance with decent luxury, but they can't do it with reliability or good value, and everything they make seems to weigh 500lbs more than it has to.
If I wanted a Rabbit, I'd get an 83-84 GTI.