What's happening to the GTi's?

[Matt-Rallye]

However, Peugeot got their shit in one sock in the 80's/90's and really did make some cars that went on to be the definition of their genre. 
Good, low mileage 205's have been proper money for a while now. The 306 is due any time soon. 

Well going by your definition, was the 306 the car that went to be the definition of the genre??

It was a good car, but mid-late 90's hatchbacks were not very exciting IMO, the Escort and the Golf became fat and slow, the 205 gave way to the 206 which was a piece of shit, the Astra was a f*cking nasty tin box and the Civic hadn't yet started wearing the esteemed Type R badge.

In essence the 306 was a decent car from a bad era, which may drag prices down compared to the 205 as it was never a proper legend.

Again your talking bollocks.

Civics of that era were rocking the might VTi and VTI-s badges and are still regarded as legendary power output from a 1600 N/A engine out the box. Try finding a similar age civic & 306 in top spec (ph3 gti6 Vs late EK4 VTi-s) and you will see that for YEARS, those civics have been holding silly money!

Example: http://www.ebay.co.uk/itm/Honda-Civic-EK...SwFV9Xzcok

The 90's was the last of that golden era for hot hatchbacks, after that it was only really renault and honda that continued with the high capacity N/A true hot hatches up until around 2010.

The clio 16v & williams are from the early 90's and have rocketed in value in the last few years, the 306 will undoubtedly go the same way as it already has. Im comletely with Ben on this one and a decent standard 6 or rallye is a sound investent and a nice thing to have tucked away.