Badge snobbery aside from the usual culprits, the 1.4i isn't actually a bad engine at all. It's reliable and relatively revvy - you could do a lot worse.
Personally i'd rather take the insurance hit on the chin and have a reliable car, opposed to an unreliable POS french car (which is incidentally what I had for my first car and paid the price).
Economy wise, the 1.5 VTEC-E is probably the better option.
I'm sure Lopez will have some further comments as he had an MB shape 1.4i, which can be picked up for peanuts (and incidentally he did).