Whilst it may not be as accelerative as a 135i or have the awd traction of the S3, the 130i is still a great drivers car. In my opinion, this is mainly due to the crisp, free-revving and great-sounding NA N52 3.0L, the manual gearbox and the heavy hydraulic (not the light VAG electro-hydraulic) steering.
If you go ahead with the purchase, I'd recommend binning the runflats and putting some decent tyres on it. They can be lairy in the wet, especially if you are in DTC mode or DSC off. Wouldn't be as good as the S3 in that regard, but rwd does have its advantages when it comes to fun, as I experienced at MDTC last week
http://www.youtube.com/watch?v=enW9yArvWrM 