I even don't remember really fast Peugeot for last 20-30 years. Maybe 205 GTI was quite fast. But it's not important because Peugeot in some meaning is like BMW, even not so powerful car can have a good handling and a driver will feel that he drives more fast as it is.

Nowadays such 207 are simple old cars, but petrolheads remember about their gift to give a feelings. On some roads outside big cities you still can have a fun on such hatchbacks. Lowered suspension will make this small hatchback else less comfortable, but handling can win from it.