Less equipped how, exactly? I don't remember the lowest-of-the-low-spec early noughties Toledo coming with Bluetooth, a trip computer, air conditioning or parking sensors. In fact I'm fairly sure the '99 1.6 8v the parent's of a school friend had still had keep-fit windows front and rear.
I think he refering to the engines. Second gen and Third gen came with bigger engines options you coluld chose, for example;
-Second gen came with the same engine as my Ibiza (But the Cupra model) 1.8 20VT with 180hp and you could also have the 2.3 V5 with 170hp
-Third Gen: you had the 2.0 TFSI 197hp engine if you wanted to.
-This Gen: The maximum engine you can get is the 1.4 TSI 120hp which can be good if you are NOT into cars but if you like something more "sporty" this is very bad and you end up refusing to buy a VAG or, you save for a Volkswagen Jetta.