I upgraded from a B7 A4 to a 2016 8V S3 with APR Stage 2 last year. My B7 A4 was stock apart from the wheels, tires, headlights and tint. The S3 is closer in size to the B7 A4 but the interior is slightly smaller. I love my S3 and the tuning potential is great. You can easily get 400hp. One thing to look out for with the 8V S3 is the water pump. They tend to fail so try to get a low mileage S3 or one that has already had the water pump replaced. I'm not aware of any other major problems with the 8V S3. I did A LOT of research before buying my S3. I wanted an S4 but with my budget I could only buy a B8 S4. From my research a lot of people that had older S4's bought the 8V S3.
All 8V S3's are similar. They use the MQB platform. The S3 has Quattro but it's a Haldex AWD system. It's in FWD most of the time and power is sent to the rear wheels when there is wheel slippage in snow or rain and when using launch control. You can choose between Premium Plus and Prestige trims. 2015 S3's had more options to configure your car. For 2016 Audi changed some of the configurations so options you could previously choose to get on the Premium Plus trim were changed to only be available on the Prestige trim.
My S3:
2016 Premium Plus with Tech package (magnetic ride, navigation, 7 inch screen, upgraded sound system with HD radio), Black Optics (black trim instead of silver)
19 inch wheels (18 inch standard)
Super sport seats (gorgeous, look them up)
Audio:
The 8V S3 comes with Apple CarPlay. For Android you will have to use Bluetooth to stream music. You can also install an AUX cable via the glovebox or center console storage area. The 8.5V (2017+) S3's come with both Apple CarPlay and Android Auto. You can retrofit this onto the 8V but you have to buy a new screen and install it. There are three options when it comes to the sound system:
The standard sound system does not sound good and you get a very small 5 inch low resolution screen.
The upgraded sound system sounds good and you get a 7 inch high resolution display with HD radio.
The best audio option is the Bang & Olufsen sound system. You get additional speakers and it sounds excellent. The screen is the same as the upgraded sound system I explained above.
All 8V S3's have LED DRL (daytime running lights) on their headlights. I don't have the full LED headlight package so my headlight bulbs are Bi-Xenon with the LED DRL. The full LED headlights definitely look cooler when the car is parked and off but they don't provide very good performance because they are the first-gen LED headlights. The Bi-Xenon bulbs provide more brightness. The full LED headlights on the 8.5V (2017+) S3's are Matrix LED and much better. Everything else is pretty much the same with very small changes. From the side view you can't really tell the difference between an 8V and an 8.5V S3. The 2017+ models have a redesigned front and rear. The front looks more aggressive on the 8.5V S3 but the 8V S3 still looks nice in comparison not super outdated.
That's all I can think of right now.
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