The 1-series' biggest drawback is the lack of comfort. The cabin ergonomics are terrific, yes, and the thing drives like an insane go-kart... but it rides like a go-kart, too... which can get tiring if you're driving for hours at a time... and the rear seat space is pretty bad... about as small as the Swift, I'd wager...

...but if you're going to get one, the 120d is the pick of the litter. The 1.6 and 1.8 have a better weight balance, but the 120d handles better than most anything you can buy at the price and can do diesel-y burnouts with the ESP switched off.
If you're going for 1m and you're looking for steering feel (given what you're saying about the jazz), then there's really only one car for you... the Focus. The Civic's steering is sharp but somewhat artificial, the Mitsubishi, too... the Impreza's steering is... as said... numb... and the Mazda3's electric steering is just a bit worse than the Civic's.
The Focus is the only car for under 1.5m that has properly good steering. Next closest would probably be the Mazda6 (not very fast or nimble, but lots of fun). The Accord's steering feels wonderful, but it understeers like an old CR-V.