I have owned the car for a year and a half, I work for a very high end German manufacturer and I don't believe the gap in quality is anywhere near what most people claim.
The car is much cheaper than a similarly aged German car, quicker and a lot more fun to drive, and from my experience, the problems are all minor and cheap to fix.
My car was recently valued at £1500, which seems ridiculously cheap bearing in mind it is good looking (maybe a little girly), well specified (CD, air con, electric front and rear windows etc.), reliable and much more fun to drive than it gets credit for.
Good tyres (Goodyear Eagles on mine) make a big difference (originals where eco tyres and poor) to the handling, and although it does roll a bit, it grips well, the rear will come around with some lift off and it is very easy to place on the road (2nd home in North Yorkshire Moors).
It isn't that slow either 0-60 in 9.3 and 123mph top speed may not seem like much, and you have to rev it, but bear in mind I get 37mpg or better out of it, and it costs me at 21 £590 to insure fully comp (My 1.1 Fiesta I had for 3 months before was £490 per year, and wouldn't go above 80mph on the speedo, Clio 182 is over £1500 with same insurer).
Interior is comfortable for two, seats seem fine to me after 300+ miles, rear seats aren't for people (useful for very short trips) and the boot is big enough, but through a very small opening. Not that practical, but it was never meant to be.
My main reason for looking at the Megane was its good at the time NCAP rating of 4 stars, which is very high for the size/age/price of the car.
I have had a lot of trouble finding a replacement, and I'm having to spend over 4 times what my car is worth to fund it. I'm going for a Clio 182; I've tried Civic Type-R's (Ugly but fast), ST170's (Not that fast), Impreza's (insurance) and MG ZS 180's (Lovely engine but too dated.) The Clio is the only car that I have driven that I would give up all that extra money for.
If I only had £1500 to buy a car to use every day, this would be it. Regularly travels 700 miles a weekend in the same time my dads new V70R does, 37mpg +, fun to drive, not slow and mine has been reliable.
Very very good value for money at the moment. My mate has just spent £4500 on an A3, which is nice inside, but worse on fuel, not much quicker, and not as much fun.
Not the best in most areas, but very well balanced and cheap. Don't know what else you could get for £1500 that would be comparable.