I think availability might be limiting sales, and I don't understand that...when we got ours in 2010, we had to wait >2 months to get it, the dealer actually quoted 3 months, fortunately we didn't need it quickly. And we didn't get anything exotic, just the Highline with the manual (hmmm, maybe that is exotic...). We could have had any variant of gas engine model right away, not sure why VW doesn't up the production on these.
We searched the alternatives and the expensiveness is pretty subjective I would say. Yes it's expensive vs. the Prius V maybe, or definitely compared to the Mazda5 which was second on our list, but then again it's cheap compared to the Audi version, which isn't really all that different (go ahead and hammer me Audi diesel drivers). We didn't find anything comparable that drove as nice as this thing, had great interior space relative to its size, and was economical. 2 yrs later we still love it.