I cut the springs on my car and have it sitting within 1/2 inch of the bump stops. I am not sure how much it is lowered from factory but probably at least 2 inches or so. It rides much better, the factory springs are way to soft and could use a bit of stiffening.
Yeah our gen 4&5 cars are odd in how much ground clearance they have.
Also, the later cars had stiffer springs. I talked to Waterboy (it might have been someone else with a chopped spring mk5) and he said his car is pretty harsh after the chop. If he could undo it, he would have cut less.
It has been said at teamswift that the mk3 cars had softer springs, so you might want to see if you can get a set of those to cut. The ride won't be so brutal afterwards.