I recall a similar MK4 Golf with 16" steel wheels and the car was very standard to look at and it was decked, and the Steel wheels had been reconditioned Alloy Silver... it had a TT engine pushing 260bhp... what a sleeper....I remember seeing a mk4 yonks ago that was pretty modded, dropped on its backside and running steelies for the winter, and it looked pretty good - had a kind of dirty look to it as the wheels were black - but still pulled off the modded look very well [Y]
After seeing that, I tried to find 17" steel wheels that would fit my Golf so I could do this look for the winter and for when I give my wheels a very good clean, plus considered using them to drive to shows and then change the wheels over so there would be no brake dust on them. When I knew I wanted bigger brakes then this went out of the window.
I guess steel wheels are one of those things that sounds nasty until you see it done.... Like:
a Yellow S3... if you've never seen one, it sounds nasty, but when you see it it works...
Bora front conversion on a Golf.... I thought that would be nasty until I saw one completed.
Tabs go for it mate.... if it looks S**t then just change the car back again and sell the steel wheels on.. how about looking for 17" steel wheels and use hub converters... as I don't think VW 5x100 PCD do any high than 16". May be try some Hub caps to match Audi do some nice disc style.
Just my opinion.... but I would go for it