I've put on about 22K miles on my VW Jetta Sportwagen (sic) TDI in just under a year. So far, I like it a lot. I'm averaging a real (calculated) 40 mpg per tank on mostly town and rural road commutes. I've gotten over 50 mpg on long, easy highway rides, but 46-48 mpg is more usual on the highway. Plenty of low end torque, and when using the sport shifting setting or the Tiptronic mode, it actually reminds me of driving my old BMW 2002 quite a bit (can't heel and toe of course!) but the mpg suffers when playing. There is plenty of passing power up to 75 mph or so, but you do have to learn to anticipate the slight lag inherent with turbos, either gas or diesel.
There is plenty of room for my basses, electric and upright, and amplifiers, or dogs, groceries, camping gear etc. My wife and I have been completely comfortable on 10 hour rides in it.
Diesels have improved so much over the years, but it was the VW's ability to pass CA strict emission requirements that allowed me to consider getting one. There is none of the belching smoke and fumes that are usually associated with diesels and it is almost as quiet as the gas models.
I just hope that the reliability is better than on my 2001 Passat. I loved driving that car, but hated paying for the repairs. I managed to get over 200K miles on both my Passat and my '98 Golf, both gasoline models. The Golf was reasonably trouble free, my neighbor's daughter is driving it now, however the Passat was really troublesome with electrical and engine oil sludge problems. VW has a real mixed reliabilty history and doesn't come anywhere close to the historic reliability levels of Honda and Toyota. I know that I'm taking a chance with the Jetta diesel, but I'm hoping to be able to get 300K miles out of it. I also had an '84 Jetta and a couple of bugs from the 60s when I was younger, none of which were able to last over 150K miles.
Cheer,
Dennis