Why not get something in the middle? An Audi B5 S4 runs a 2.7 liter twin turbo with torsen center diff awd (33/66 mechanical split) and a six speed. They make 250hp (~200-210whp) and can make upwards of 300whp with a tune. They're basically A4's with more upscale interior and a much better drivetrain. The motors are capable of over 500whp on the stock bottom end and the trans can take ~800whp (there's a company that has an 800whp S4 in the 9's with an untouched tranny)
They're about $2-5000 more than a comparable A4 and usually cheaper than even an STi. price range is ~$8000-13000
Only downside really is the stock K03 turbo's are prone to failure at around 100k miles (which is why there are so many for sale at this mileage). This wouldnt be that big of a deal as you can get replacement K04's for ~$1200 and easily make 400whp (youtube "stage 3 S4"). BUT to swap the turbo's you have to pull the motor >.<
They do sound nice tho.
