Nothing wrong per say with the handling on a mk1, in the right hands with a good driver it'll be fine.
The problem was the same as a lot of decent sports cars, i.e. the s2000. When they first came out they were set up to grip right until the very limit, then they let go big time.
People don't like this as they are stupid and try to make the car do things it can't, get no warning they are about to hit the limit and then end up in the hedge/wall/central reservation.
So they soften them up in later revisions so that the car lets go gradually before spinning you into the hedge/wall/central reservation.
So saying the mk1 is shat is subjective, it takes a very good driver imho to get the most out of it.
Thus I'd have the mk2 as I'd probably bin the mk1 within a week