I think you made the best decision, if i remember rightly the oil sensor isnt on the bottom of the engine, so if you have no light on your dash your running low but still safe.
I use the VW quantum stuff semi synthetic for my 1.8t AGU does the job well and is handy for other VW motors. No engine problems for 2 years anyway. "Touches a large peice of wood".
Though i guess it depends how tuned up your engine is.