Any German car tends to have little niggles here or there. It's part of the trade-off for the 'joy' of owning one. Personality usually makes up for it. I don't recommend them for outright solid reliability. I will, however, say that they perform very well, feel very solid (parts and feel while driving), do deliver remarkable fuel efficiency, has lots of room up front, the Wagon TDi holds it's value supremely well, and if you like those virtues then it's probably worth it.
It is my own personal belief that German-built VWs are less prone to rattling than Mexican/Brazilian-built VWs. The Jetta Wagon is the only Jetta that's built in Germany, so that's on your side. I'd recommend driving the specific unit you'd like to check it out on a long test drive.
The Wagon is quite nicely finished inside, and has those handy under-floor storage cubbies in the rear. Doesn't have lots of rear leg room, but if you have no or small kids it's more than fine.
The high torque at low RRM diesel engine is well suited to the manual OR auto transmission. Typically with other 4-cylinders you have to revv the engine to develop much power, which also creates a lot of noise. Automatics usually shift-up before peak power can be achieved, thus making the car slower and less responsive. Either that, or they'll hold the gear causing excessive noise or downshift annoyingly every time you go to pass. With the TDi's torque, it's not ultra fast but you do have the FEELING as though there's lots of power there because it's always where you need it, when you need it. Very well suited to an automatic because peak power can be had well before the transmission upshifts. In the manual, it's super flexible to drive in any gear. Highway cruising is effortless and the car tracks true - car revs fairly low on the freeway too.
I don't find it too hard to find diesel fuel. Highway signs are usually marked 'diesel' or 'D', and in your neighbourhood I'm sure there's a few around town. The fuel can get stenchy if you touch it, but I don't find it really bad. It's 'different' though, that's for sure. But I don't have to visit the service station as often either.
Since you live in B.C. winters should be milder, which will work to your benefit. Mine has never not started, but clearly would prefer warmer temps in winter. Diesels run cooler and it does not warm quickly in cold weather, and won't at all if left idling at -15dC or below - makes for fun while scraping the windows! Gotta love Canada!
As I'm sure you're aware, the all-new Jetta is coming next month. Roll-out will take many months until we receive all 3 of the engines, the 3 transmissions, the bodystyles, etc. The new Jetta wagon won't be available for at LEAST 1.5 - 2 years. They haven't unveiled the car in Europe (or anywhere) yet, and usually there's a lag between when cars are unveiled there till they make it here. So, if you like the current Wagon I'd say go for 'er.
I have 246K on my '01 Golf TDi manual and am very pleased with it. Seems to run smoother every day, but have noticed it a bit harder to start in Winter. Nothing major, but just hesitates ever so slightly or takes an extra second of cranking. Probably because I maintain mine less religiously, am at 15,5K without an oil change now - you need to run synthetic in the TDi's, which then enables you 16K between dealership visits - and the car is just getting a bit older and perhaps a part or two is warn.
In any case, if you like the car, are into the effiency, and notice how solid it feels I'd say it's for you.
The new Jetta sedan means there's deals to be had on the overstocked '05 sedans. The Wagon is not being replaced for a long time and therefore I would expect less freebies or reductions off MSRP. Also, the Euro-Cdn-US exchange rate prevents this from happening. However, as a whole VW could use more sales and I'm sure you could do very well off the MSRP. Perhaps $2Gs off... I dunno. Depends on whether you purchase or finance or... TDi's are harder to dicker on, but they're lookin' to move all they can.
Ask folks you see driving them what you think. Some VW dealers can be pretty pathetic, so get the general opinion of people you see. Let us know what your thoughts are and what you're looking at when you go out searchin', eh!