My wife has the 1.6 diesel SEL and we are very impressed but I think if I had the choice again I would go for the 2 litre.
It doesn't really drive like a diesel, apart from the noise which isn't obtrusive but is noticeable at lower speeds. Power is OK if you use the gearbox but it doesn't give you the shove of other diesels from low revs, especially on the motorway in sixth doing 70 and want to increase speeds.
Economy is averaging at about 55 mpg which is mostly A road driving on a 15 mile commute. It has just hit 2000 miles so may get a little better with a few more miles on the clock.
In comparison, I drive a 2ltr 190hp A4 S Line diesel, the engine is a delight to drive, quiet and powerful yet still matches the economy of the VW. However, the VW is more comfortable and has more toys than the Audi, we love the adaptive cruise but are still getting used to the Lane Assist.
Picked my 1.6 up 3 weeks ago so early days.
Tend to agree with the last comments. My last 3 cars have all been 2.0ltr and all drove beautifully. I love the t roc but it would be nicer with the larger engine. Also getting less to the gallon with my 1.6.