The mid spec Jazz SE makes most sense. No point in paying more money for a huge glass sunroof you don't want and which robs the car of rear headroom. But the C3 Picasso VTR+ has a more comfortable ride and, I think, better handling. Looks are in the eyes of the beholder. Can't tell you how good the quality will prove to be. I've just done a year in a Ford Focus ECOnetic with basically the same 1.6 diesel engine as the C3 and no trouble. There might not be much difference in mpg between the Jazz 1.4 and the Picasso 1.6HDI and petrol is usually cheaper than diesel. Boils down to how much room you want. And whether the ride of the Picasso is more important to you than the looks of the Jazz.