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A4 2.8 vs 1.8T - altitude effects



All:

I had an interesting conversation with someone this weekend. Here in 
Colorado where we _start_ at 5280ft., non-turbo cars are at a 
disadvantage. We lose probably 15% to 20% compared to sea-level.

She sez the turbo would make up for the loss of power, I sez that the

2.8's displacement makes more torque for faster starts.

Does a turbo make up for the loss of external air pressure - ie
charge 
pressurization is the same regardless of altitude? Would the knock 
sensor detect the change in O2 and adjust the timing to mantain 
correct stochiometric ratio? At the expense of Hp?

If that is the case the 1.8T would seem a much better bang for the 
buck.

Comments?

/J.
80Q