Wife drives an '09 TDi sportwagen and it's great. She wanted an SUV for the size/space and didn't think the VW would be big enough. She soon realized how much room it does have.
Car has great passing power for what it is. We get an average of 37 mpg, about 50/50 city/highway. I'm 6'6" and fit it in reasonably well... Much better than her old Acura. The fit really isn't a replacement for an suv... Here's an article c&d did that's pretty interesting: