I agree, although mk2s look dated because of evolution they are probably the last distinctive golf. I drive and like a mk3 but in terms of looks it certainly is a bit puddingy and much less well defined than the earlier golfs.
I think VW had a great opportunity with the MK5 in terms of brand, funding, reputation etc to produce a really great car, going someway back to the qualities of the mk1 but obviously in a 21 century package, however unfortunately they decided to play very safe and have produced a very average car that sits alongside vauxhalls, peugeots, toyotas etc in a bland bunch of dullness.
It's quite painfull to say but the only really innovative forward thinking cars in the recent past have been the Ford Focus, Toyota Yaris, Fiat Multipla and a few others.
Which is a shame because VW could have produced a superb Golf if they had the guts.