For me, there were several reasons why I chose the engine I chose for the A4.  I tried to compare two engines to my needs however, I have found that these engines are not the same animal and comparing them is rather difficult.  I will try to compare them as best as I can.

Benefits of the 1.8T:

Price- Naturally, a four-cylinder engine will be cheaper than a six-cylinder.  Cost difference is not always important to everyone but was very important to me (I like to save money when possible).

Fun- There is no other way to say this but, the 1.8 engine (complete with a low-boost turbo-charger) is the more "spirited" engine of the two.  Most people who own the 2.8 say the engine is somewhat quieter and smoother than the 1.8T.  Personally, I like to feel the engine and hear it too.

Ease of modifications- The 1.8T is an engine which has a lot of room to play with.  Numerous performance companies (some are in the links section) design engine and software upgrades commonly known as "chips".   A chipped 1.8T can be faster than the 2.8 engine.  Also, while there are a TON of chips available for the 1.8, few are available to the 2.8.

Fuel Economy- A small engine will always get better gas mileage than a large one... not much more said!

Benefits of the 2.8:

Power- In stock form, the 2.8 is (probably by laws of nature) faster than the 1.8T.  For MY2000, the 1.8T's horsepower was measured at 150, while the 2.8's was at 190.  Anytime a car can have a faster 0-60 speed is considered good well, the 2.8 does just that.

Trim Level- If somebody gets a 2.8 engine, the price is higher and the trim is "classier".  Instead of the interior being covered in brushed aluminum (1.8), the 2.8 features polished wood and very nice options like leather and power seats with lumbar support.

Ride- Some people like a smooth ride, others don't.   Unlike the 1.8T, the 2.8 engine is smoother and quieter.  However, I personally like a more lively engine.

Drawbacks of the 1.8:

Slow when stock- There is really no way around it, the 1.8T is pretty slow when stock.  If 0-60 for a stick-shift, FWD 1.8T in 8.1 seconds seems ok, add a Tiptronic transmission and Audi's Quattro and you've just upped the 0-60 to nearly 10 seconds- not to shabby.  Perhaps the only plus to this is that the 1.8 is only slow when getting to the speed it needs to be at once there, it is quick.

Trim Level- Audi's trim level in the 1.8T is not always a problem for people, but some expect leather and wood when they pay ~28k for a car.  Personally, I do not see trim as a drawback.  For me, wood is out of date and not always sporty... brushed aluminum is SLICK and it's the same interior in the powerful S4.  However, there are times I would kill for power seats and leather is very nice.  I guess you pay an extra 5 grand for something.

Things get pricey- Once your beloved Audi has finished the great warranty, maintaining it can get very expensive.  If your turbo decides to die at 80,000 miles, you have a BIG problem... a new turbo will burn a huge hole in your pocket.

Drawbacks of the 2.8:

Not as fun- Some say the 2.8 is not as fun to drive as the 1.8T.  True for most, a 1.8T would be more fun to drive than a V6 automatic but they are different cars.  This is truly a personal opinion.

Modifications are more money and harder to find- For some reason, more engine mods are made for the 1.8T.  Perhaps it is because the 2.8 is a faster engine stock.

I hope this has helped you see the differences between the engines.

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