I'm sure you saw the recent thread concerning the Passat in China. That is the car VW should offer here. Sure they want to keep a higher number of customers...keep selling what they have, but make the SEL or SEL Premium what the China car is.
Plus, even that China version, just barely equals what the LuxII or SportII was on the B6.
I also understand that they left many luxury things to the CC, but i am sure there are families who would want the practicality of a larger sedan, with those nice luxuries.