2) Duh, there will always be bigger, badder, faster fish in the sea.
3) You have a valid point. However, in the grand scheme of things, VW's entry level, Corolla-fighter isn't very high up on the enthusiast scale. Sorry.
I understand the niche that the nice Jetta's have forged. Bottomline is it doesn't matter. If VW can trade one of your sales for 5 sales to the average consumer that doesn't know/care, they're going to. It's just business. Buy something else if you're not happy anymore. That's why there are other automakers.
I'm not here to fight. Some just need to see it's a business move to increase sales volume. That is all.