101 Piston and sleeve
 

Hi Guy's,
I would like to know if it's a good idea to use 101mm piston in a daily driven type 4 motor, crank size would be 71mm.

not unless you are planning on using Nickies.

Otherwise you wont get more then 20-30,000 miles out of that motor with regular pistons & cylinders.

Engine choice
 

What's the best setup for daily driving.

Depending on your budget, you can get great reliability out of warmed up 2 liter, a 71x96, or for some more $$$, 78x94 or 96. Set your budget 1st, then match your wish list to that.