As a man who swapped a stunning 2002 D2 S8 for a brand new 8V S3, I feel slightly qualified to add my comments.
Yes, the brand new small light hot hatch is faster and better handling - not really a great surprise. I like the tech in the little S3 and it is quite comfortable and twice as good on fuel.
But...... I wish I'd kept the D2 - so much more of a car. It always felt special. Every journey was an event! Strangers would comment. Even groups of kids in their Corsas would watch (and especially listen) as it burbled past them.
Sadly, I've fallen out with Audi, so will never go back (another problem of owning a new car that has an issue with it), but for me, the next thing will be older and more interesting again!
Long live the D2 S8
