If you can cope with the mpg I’d say go for the s3. My friend has one and uses it daily and it’s not as bad as he expected it to be but his commute is mostly motorways.
It’s a lovely car though and fast/fun enough when you want it to be.

I don’t know about you but if I went sensible I’d end up regretting it and wishing I’d got the S3. Worst case, if you did get the s3 and decide it was a bad choice it should be easy enough to move on and get the sensible option without losing a lot.