It does seem to be something of a VAG trait. The first thing I do to my Fabia vRS is get Eibach vRS springs and Koni adjustable dampers. That will sort it out. It does handle quite well though, but it definitely needs the traction control left on, and it is a little wallowy.

The TT handles better than any other VAG car, except the real high end Audi's and the likes of the Golf R32. I just dont like the look of them, they look too much of a hairdressers car. I love the stylish interior of them, though. I would much prefer one of the Skoda vRS's (which look far meaner), Golf R32 (excellent car), Golf GTI Mk5 (looking good), Leon and Ibiza Cupra, and I also like the Audi RS models which are really fast.