I spent a weekend driving around pittsburgh with my wife, kids & luggage in my 240D w/ 4spd manual. Bigger steeper hills than my hilly hometown of Ithaca, NY, or my experience of San Francisco. No problems, but you'll use all of the skinny pedal. Neat trick on a steep hill: Set the E brake w/ left foot, then step on the clutch, put it in 1st. Lite changes, left foot up, right foot down, pull the release knob WHACK, away you go.

I doubt you could hold more than 50 mph on a 7 or 8 % climb out of a valley or switchback, but if that's all you need, you'll be stylin'. Study up on engine & body assesmen, don't be afraid to look at more than 1 or 2 cars.