I would rather get an ALfa 147 2.0 and have cash to modify it with a supercharger/turbo etc...
or
a Golf Mv 4 Gti and mod the bugger to 300HP... (mebeb now a Mk 5 since it is out)
or
A used Fiat Coupe 20V with lots of power...
worse comes to wose, I'll go for a 3 series, bigger, more established and definately not an entry level car.
On another hand, with the price of a 120i at 229k, I wonder what those guys at EuroMObile are going to price the upcoming Golf Mk V 2.0 FSI... if its about there, too bad for them... or how about the Audi A3?