... I'm really liking the idea of a TDI Jetta Sportswagen, but I am leary of VW due to their history of sub-par reliabilty.
I think alot of folks are in the same boat as you. Devoted VW faithful have learned to live with idiosyncrasies of their vehicles but I for one was scared off a Jetta when we replaced the 02 Altima 2 years ago. They sure do make some great driving cars, though. That, you can't deny.
I understood that the reliability issue was turning itself around here now that they have improved some of the quality build issues of previous models. They don't seem less reliable in other parts of the world - perhaps it's our extreme climate which can be hard on a car.
You're right... in europe, VW is considered a very solid car.. I don't know if their cars are less quirky (due to a more benign climate) or perhaps they put up with a few more "idiosyncrasies" as you put it... Europeans, I believe, ttend to focus more on the driving experience and handling characteristics of a car and less on the utility... For instance, the corolla that is sold in NA would never sell there..it's too BORING for their tastes. So what did Toyota do? they designed a car that barely resembles our Corolla...it's not even the same car, for all intents and purposes...and it far nicr than ours...
I guess the rest of the world views us (North Americans) as a big, boring blob of utilitarians..actually, that's not reall far from the truth if you give it some thought.