Yes, there is definitely a huge difference! I think this has nothing to do with the engine, which is the same, but rather the much better cabin sound insulation. In the mk2, you still hear the engine, but it is not annoying.
In my opinion, less noise also means less personality. In town, I prefered the mk1 noisy interior, it was fun to hear the engine roaring. But above 50 mph, it was really hard to have a conversation in the mk1. In the mk2, highway trips are way more comfortable.
Another aspect that improved a lot is the suspension.