My 2p
Do it , the engine will quite happily power a mk2 , it hussles the civics and Tegs about quite happily , ad for torque , who needs it , bike engines hardly have any and they seem to do ok , im sure if you manage to seperate the engine loom and the rest of the car loom you could splice it together , CV joints well im sure there is a specilist who would be able to handle a honda inner and a VW outer
it would be easier to drop in a 20v , but its been done before so where is the fun in that