I used to sell Audis back in the 80's. I just bought an 01 A4 with 167K.
It feels softer and sloppier than I remember Audis being. I had a Fox GTI that was a light and agile performer, skipping over bumps with ease.
Do you suppose it's original suspension with 167K on it giving me that feel?

 

On stock suspension, especially non-sport suspension, it will feel fairly soft for a comfortable ride. It shouldn't feel too sloppy though.

These cars require periodic replacement of the front control arms, as the bushings will wear out. It's typical to replace the entire arms instead of replacing only the bushings.

Also I'm not sure an older GTI is a fair comparison as those cars were an easy 700+lbs lighter and not designed for nearly as comfortable a ride as the B5.

 

Bad outer tie rods/ball joints will make the car feel sloppy.