I feel very able to comment on this thread cos I fell out with VW after the 2 awful Mk4s I had. I bought them after having several Vauxhalls thinking I was buying a more upmarket, better quality brand/car and they were ten times worse. And the dealers were utterly unable to fix the things that went wrong.
So, yes, I agree that VW are living on past reputation.
But, and it's a big but, that supposed reputation is exactly the reason I bought my GTi and not the VXR which I also liked. Because of this supposed reputation for quality the general public is prepared to pay a lot more for the cars and, therefore, the resale price is much higher than Vauxhall. So as a private buyer it ultimately made more financial sense to get the Golf over the VXR as it'll be cheaper in the long run. We all benefit from this "reputation" in this way even though we know from experience it's not always true.
We also know that true engineering integrity has been discussed countless times on general forums and the general consensus is that Japanese makes are best. Even then, you could end up with a dog so I'm just enjoying this GTi at the moment, even with its odd creak, cos it's a fantastic car to drive (and, when I come to sell it, to own as somebody will no doubt pay me a fortune for it).