I have an S3 as an everyday car. It replaced my E30 M3.
I have had it for about a month or so now and done about 2,500 miles in it and I do really like it. I wanted a nice sporty car that was comfy, would munch miles, be reliable all without being too in your face and I have to say it fits the bill perfectly.
I agree they are not fast in standard form by tuned cossy standards, but they are a lovely car to drive and very nippy and I think it handles really well for a car its size and weight. OK it don't go round corners like my Exige, but then not much does. Top end, I have had 150 on the clock out of mine and it was still pulling. Crusies nice at a ton in complete silence and as has been said coems with all the toys.
Bose stereo
electric everything
climate control
really cool Recaro super comfy electric seats
ABS
Traction control
etc etc etc
Sean..