First of all, this is an apples-to-oranges comparison. The Elite 4200 and the VXIII lineup are the mid-line matchups. Even so, the Elite 3200 compares quite favorably and actually holds its own.
Leupold's EER variable scope, while a decent performer, still leaves a bit to be desired and is far from the final word in handgun optics. The older TC 2.5-7x32 (not the recent models; TC changed vendors along the way, and quality went somewhat south) actually outperforms the Leupy in a number of critical optical categories -- despite this also being an apples-to-oranges comparison as the TC variable cost significantly less.
The resolving power of the TC vs. the Leupy in low-light comparisons favors the underdog, as does edge-to-edge clarity and overall (perceived) image sharpness, although admittedly the advantage in any of those categories is relatively small.
In handgun optics, there has yet to be a clear overall winner as each still suffers from shortcomings that keep them from being the "perfect" handgunner's scope.
Some folks NEED the gold-ringed scopes for their own reasons. Others try and choose the best value for the $$. In today's handgun optics market, the Nikon variable offers the best value and is a stellar low-light performer -- and gives you image quality that the Nikon name is renown for. Following right behind is Burris and then the Bushnell Elite 3200 series. (The Leupy is actually right on the heels of the Burris and slightly ahead of the Elite 3200 in most across-the-board comparisons except one: price)
As to someone's question regarding durability, I have a 2-6x32 Bushnell on a .44 magnum revolver, and it has now seen around 1850-1900 full-power loads using 320 grain bullets -- and it continues to work flawlessly. Of course, correct mounting procedures on such a setup are paramount as any error will render ANY scope junk in a hurry when matched against the wicked G-forces of handgun recoil.
In rifle scopes, again, I top my guns with what I deem the best bang for the buck while keeping the quality at a high level. To that end, most of my rifles have Nikon Monarch scopes on them while a few others have Zeiss and Burris (along with a few Weavers & upper-end Bushnells as well). The Zeiss Conquest actually rates slightly ahead of comparable Monarchs in terms of optical quality, but the difference is so small that one will never notice it in the field. And the Monarchs cost a good bit less than the Conquests...
And for those interested, the VXIII ranks 3rd behind the Conquest and Monarchs when one considers all critical optical performance categories. Again, however, the differences are not staggering, and any of the 3 would serve you quite well.