IMHO 65k for an S3 drive away is a bargin. I paid 64k 2 years ago for an R32 DSG driveaway, I do silly things when I decide with my impulse rather than my head and wanted it when it was released and was in high demand.
I did like that interior of the VW, feels more polish and refined than the BMW. Some of the plastic definitely feels a bit harsh in the 135 now. And the instrument cluster in the BMW is a bit plain. I haven't owned an Audi but at the dealers it feels better than the VW.
Drivewise, I didn't like the 4WD system of the R32 that much, I believe it is the same in the S3, it is mostly FWD, but I had the Haldex upgrade and it made it a bit better. Fuel economy there is no comparison, the Audi wins.
Can't say much about the S3 with regards to handling, but the R32 was very porky and brake was very sensitive. Handling was no where as good as the RX8 I had before that. I still like the drive of the RX8 compared to the 135, feels more nimble and predictable.
What made me choose the 135 was the stork power, and rear wheel drive. The manual gear stick is a bit to long and the short shift kit is a must if you're going for the manual 135.
DSG on the R32 got a bit annoying after owning it for a while. While the unit still works great as expected, the response on downshift can be a bit slow in automatic mode and sometime it will make a big clunk when the computer doesn't know what to do. Also kick down can be slow sometime, again you can actually catch the computer off guard. Maybe the Audi unit is better but I believe it is the same mostly. Their new 7 Speed DSG sounds interesting with the dry clutch, but not sure if that's available yet. The DSG is definitely the best of both world, but for me who can only afford 1 car, I missed the manual after a while.
The new Nissan 370Z looks very promissing though, if they really have improved the interior, have to wait till I see it in person. Some videos review now say its better than the 135.