It is unfair to compare a 1998 First Generation Focus hatch
(face-lifted 2 times in 2000 and 2002, basically a 6-years old car)
with the new 2004 Megane hatch, with all the technological
advancement and so on...
It should be compared to the upcoming New Second Generation Focus
hatch (selling in Europe now) instead, improved in quite a number
of areas, especially the ride and handling, despite, one needs time
to get used to the new retro-look.
First generation Focus hatch is still a sound buy though, with the
low COE now, it will be a steal. Of course, one that will not be
green envied when the new one drive past you 
The focus hatch got one party piece that the new Megane hatch
disappointedly lacks, the steering feel, which is very
communicative. Also is the wierd auto spring-back effect on the
Megane wheel, enthusiastic driver or people who loves driving hate
it.
