Depends on how much the car weighs, but a 200HP GTI is just the right amount of power for that car.
High performance cars such as M3's and M5's etc are more status symbols than anything. Hell, even the majority of Corvettes (the iconic American sports car) are sold with automatics.
At the end of the day, who wants to take a $100,000 M5 to the track. I doubt many would want to risk that and 99% of owners don't.
Speed limits here are 60 MPH, so that gives me 3.5 seconds to enjoy it on the on-ramp to work everyday or look like a douche guning it stop light to stop light not even getting out of second gear. One ticket over 85 and it's a reckless driving ticket for 25 over the limit. And let me tell you, even at a 100 mph, a German sedan feels like it's doing 45 solid and stable, and it doesn't take much at all to get there.
To me, if you are a true driving enthusiast, you buy something like a Lotus Exige purely for the track, or a poor mans track car such as a Mazda MX-5. The amount of money you will spend for these sports cars is just not worth it and will get old in around 6 months give or take.