JSCC:
You do have some good points about features for the money, however my experience has been that the more expensive Volkswagen models (i.e. Passat GLX, W8, 4Motion, Phaeton, etc...) all suffer massive depreciation that is not consistent with BMW, Audi, Lexus and Acura models in the near luxury class. I think this is mostly due to the fact that the expensive VW's don't sell well in North America and the reliability reputation. Therefore the cost of ownership could be the same or more with the Volkswagen even if you compared it with a more expensive luxury brand car.
Also, although I have not driven the Passat, the reviews I have read state the only sporty aspect of the car is the 'hot rod' V6 engine. If VW were to fit the 2.0T to this car we probably would lose most of the sport in 'sport wagon'.