I looked at the VRS, but as you say it's more expensive, has less kit as standard, (no climate, cruise, curtain airbags etc.) and it has a significantly lower safety rating than the Leon which was my main concern. I've found the space in the new Leon for the family to be fine, seems to be much more legroom in the rear than the Mk1. (I think the bottom of the front seats seem to be shaped cleverly so you can get your feet under them a lot easier)
I still think that if you want a Cupra for the outright speed then you should probably wait, however the TFSI has got plenty of power, oodles of torque compared to my last car (a Honda vtec), and I prefer not being bound to the narrow rev band of the Deisel myself. After all the TFSI has more power than the
Mk1 Leon Cupras(180bhp) when they came out and everyone raved about them !