The 8v has far more useable torque for around town driving. The 16V is only quicker if you keep within the power band of 5 - 7k rpm.
I've had a few 8 and 16v Golfs and although I loved the 16V as a revvy lump, its a fairly uncivilised beast and unless driven appropriately you can be embarassed by far lesser machinery.
The 8v has a far more usuable power band, and although its notably slower on paper, the real world figures are far less night and day.
Also consider the re-worked 1.9 lumps that companies like TSR can provide. Self fit they don't come in that pricey for the 8v and give you more scope for power.
My last 8v was a 1.9 Donington from TSR with piper cams, gas flowed head, full blue flame exhaust, lightened and balanced bottom end, ramair open induction filter and it was pushing out high 130bhp's.
Depends on budget and future plans to how I'd go.
If money's no object then go 16V and work it up to 170+bhp later on.