You are making lots of assumptions here, and being a bit condescending in the process, but your opinion is just that, not a fact. Those of us not blessed with an unlimited budget have to compromise somewhere and therefore choose our cars for our own reasons - need, desire, budget, single car practicality, weekend toy etc. You say that the GTI is not the best with regards performance and handling and that's true but it's is still up there as an enthusiast's choice with great driver appeal. To improve on those aspects is likely to push the price up or force quality down in other areas. I don't want that, it's great as it is
(sigh)
Why so many people on the internet confuse themselves with being the majority I will never understand, these are two different things. You in particular can be the biggest petrol-head/enthusiast out there and it really is not in my interest to argue on that. I'm merely describing the bigger picture of the GTI demographics based not on random assumptions but on personal experiences with them and mostly from the attitude which has many been expressed in VW forums, as well as in this very forum (actually even in this thread...) regarding their priorities on the performance department. That shouldn't really come as a surprise to anyone having spent enough time on the internet and on the road? Maybe we can disagree on the exact extent but I don't think you could state the GTI owners (on average) are the most hardcore owners in the hot-hatch class. Nothing more, nothing less, nothing personal.
Also, it doesn't add up playing the "I don't care/want top performance" card but then all of a sudden when someone dares to state just that, that GTI has become a car that appeals to people with other factors topping their car checklist (which is not even something to be worried about anyway, a car is a choice of many other things as well) becoming all defensive in a "who did you not call an enthusiast???" way.
The last couple of your sentences sum it well I think: You acknowledge dynamically the car is not up there with the best but are happy with the current performance-looks-price balance - I clearly believe that there is room for improvement. Mainly because everyone seems to be able to do it better these days driving wise and at a comparable if not lower cost, so I am expecting more from the car that defined the class. I think it's a given that the touches needed to go there would marginally (if any at all) be raising the cost or bringing down quality. The solutions are there and waiting. It's just that VW knows their target group is simply not interested which brings us back to the original argument...