Both Rabbit, Jetta ( and Jetta wagon) should get a new common rail diesel as soon as possible, (2008 model year) the BHP figure is less important than a big torque number... like 184 to 236lb ft like the euro diesels now offered, then dump the slushbox and get DSG for an automatic carefully tuned gearing and shiftpoint wise to take advantage of the diesel.
Bring in the Touran as a people carrier to compete against the Mazda 5
This ought to give VW a great range, 60+mpg and effortless auto driving in reasonable sized cars with a good upward path to the Passat. And the Toureq as an upgrade from the Touran... maybe change some names!