It helps to keep these things in perspective, yes you can buy a comparable Ford Focus or similar for less money, however i'd imagine that isn't a car most people on here would find as desirable as their Golf. If I wanted to save money these days i'd be looking at a SEAT Leon or Skoda Octavia before i'd look at a Ford Focus.
There's no doubt prices have risen, but if one takes a long term view they haven't gone up any more than most other cars. My Mk2 Focus Zetec S had a list price of about £22k 7 years ago, and it felt a much cheaper product than the Mk5 Golf it replaced.
The Mk5 Golf GT by the way was a little over £18k back in 2004. That was a Drive The Deal discounted price including a few options. Inflation over the period since has averaged a shade under 3%, so that money today would be worth over £25k. Go on Drive The Deal today and you'd have no trouble getting a Mk7.5 GT for that money. In fact you could get a GTD or GTI for that money. So yes prices have risen, but the discounts on offer an the standard kit more than compensate for that in my view.
I think what some people don't realise is just how much they're spending on optional extras. £1700 for leather seats, £1k for bigger wheels, £1300 for an upgraded sat nav. Not to mention how much you can increase the price by adding lots of the 'cheaper' extras. Fine if you value those kind of things, and you're keeping it a long while. But to me that starts to erode the value for money you got with the standard car. But in the interests of balance, or if you have money to burn, look at the price of a similarly specced Audi A3.
Sad as it may be, having the cash to pay for it outright doesn't necessarily get you a better deal these days. It used to be the case, but not any more. Dealers are incentivised to get punters so sign up to finance deals. Hence they offer deposit contributions. Anyone that has used Carwow will know what I mean; the finance price is often lower than the cash price. The smart people with cash take the finance incentives and then settle straight away.