People REALLY need to get over the Vauxhall stigma. It's Opel. You'd swear most people think they're engineered and built in Luton. It's basically a German car, as is the Ford Focus.
On topic, I'm fairly sure that VW know where to pitch their car in the market. Most GTi buyers will think 220hp is 'ample' and those that don't will buy the inevitable R.
It always amuses me when people from The Internet think they know how to run a global car manufacturing business. No offence aimed at any individuals of course.