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The last Lupo GTI was about 123bhp and 112lbft, NA, so no turbo lag. With a 975kgs kerb-weight. A replacement GTi will need to be at least as good, Ford has 123bhp and 125lbft from it's 1.0 turbo.
So I think VW can and should make a decent GTI.
If they can keep the weight below 975kgs I will approve.
They need to give it proper rear disc brakes though, which i'm not sure if the UP has yet in GT form?
Not only that the Up's talents are going to be built on with more power, but also more powerful versions are going to be made of the Skoda and Seat versions of the car.
Will definitely be considered for our next second car.