Could it be that Skoda are reading my blog? I only posted a couple of days ago my thoughts on the demand for petrol vs diesel engines!
http://blog.jofftastic.co.uk/2008/05/petrol-vs-diesel-prices/
I drive a Fabia vRS and don't feel there's enough of a fuel saving (if there's any at all) to justify the extra 15p/litre that bog standard diesel is costing. I know many "sporty" diesel drivers use the Optimax/Ultimate/whatever diesels and they must be really feeling it in the wallet.
A petrol vRS Fabia is probably the right thing to do in all honesty. As fun as the current model can be on those straights when you've got that repmobile in your rearview mirror, with a touch of right foot sending a plume of black soot out of your exhaust as you disappear into the distance... that sort of behaviour won't win you any favours with your MPG display.
There's been many criticisms of the Fabia's weight at the front due to the 1.9 PD130 engine but demand has still remained high, possibly even more now that production has stopped. With a petrol powerplant, the new Fabia vRS should be a lot happier and if the power output is half decent, will still win over those that are in the diesel camp due to the tuneability of the TDi engine.
I suppose the only danger is for VAG as a whole. How will they cope with their budget (almost boring) brand having such a lively model? Seat will be fine if the engine is used in the Ibiza with their auto emoción marketing but Skoda's brand almost reads "auto slumber" these days.