Always difficult comparing a car on tired dampers with a brand new one. I don't think the 182 would be ranked as one of the best ever hot hatches if the handling was that bad?
The 182 were ranked one of the best hot hatches at the time they current and before the 197 was around, its easy to dig out old references to how great they are.
The 197 in my opinion has advanced in all areas other than the fact it lacks the torque lower down that a 182 has, but thats why it has a 6 speed box, it just needs thrashing more.
The only decent and realistic review i have ever read about a 197 is this one - http://www.honestjohn.co.uk/road_tests/index.htm?id=312§ion=main , ok its a cup but essentially the message is right.
Note the bit in the article about the steering and handling