BusinessWeek has nice comments about the A3 in relationship to what sells cars.
"Not all luxury interiors are the domain of the highest-end vehicles, though. Audi's little A3 hatchback is similar in size to the plebian Volkswagen Rabbit. But inside the car is all Audi, with ultra-high-quality materials and many options that are also available on the most expensive cars the company sells. That means the A3, despite being a hatch, can be equipped with toasty heated seats and a panoramic roof that stretches from the front of the cabin all the way to the back."

IMHO I think the interior hybrid design of part A4 and part TT for a reasonable price convinced quite a few people to go with an Audi A3.

Check out the article's image slideshow for what BusinessWeeks calls "Most Luxurious Auto Interiors 2007"

 

Cool link. I love the A3 interior, in particular the sport seats and the open sky, the mix of TT bitshelps with the excitement too.