I've been happy with it. VW did a good job of tuning it and gearing it for drivability in the city. I suppose I should add that I have the 5sp manual, and haven't driven the automatic. Coming from the 2.8 30v V6 in my Audi, there's not too much between them under 3000 rpm, but above that the 2.5 really lacks power. It cruises fine on highway, but to pass on a two lane requires a downshift.
Overall it has exceeded my expectations, but I am looking for ways to add more top end power.