The thing is as standard they are fairly soft, and that combined with the usual VAG lack of steering feel makes them feel a little 'wooly', especially on worn suspension. Feel aside, they are generally a very neutral car on the limit, pushing slightly wide when past the limit of grip. They certainly don't feel as 'sharp' as that other 80's hot hatch icon, the pug 205, but they are arguably easier to drive quickly around the twisty stuff without being prone to snap lift-off oversteer, they are more progressive due to the softness.
A suspension refresh (even if you stick to OEM) and uprated rear ARB makes a world of difference, it tightens up the front end and pushes the on-the-limit neutrality towards the rear.
At the end of the day the reputation didn't come out of nowhere, they are still fondly regarded by motoring journalists and not that she's any barometer of driving excellence but Vicky Butler Henderson still has one as her daily drive and absolutely loves them.
