Lagerlout, the DSG really is the best of both worlds. The word "compromise" doesn't even exist with the DSG.
Around town in "D" mode, the DSG really is silky smooth. I doubt you would be able to tell the difference between a DSG and the very best epicyclic traditional auto boxes. Even in "S" mode around town, the box still changes smoothly, although you might get a few heads turning, due to the higher revs the box holds before changing up. When using manual mode, with either the sequential floor shift or the paddles, around town takes a little practice, but again, can be perfectly smooth.
Out on the open roads really is where the DSG trounces any other kind of gearbox. You can be a lazy git and leave it in "D", and the shift pattern will "learn" and adapt to your driving style, though this isn't very rewarding! "S" mode is much better for "making progress"

in the twisties, and when slowing for a corner, will change down considerably earlier, and hold the gear at higher revs whilst powering through the bends.
When using the full manual mode, the box will hold the selected gear without any automatic override, UNLESS the engine revs rise to the redline, or fall to near tick-over, when the appropriate up or down change will be carried out. When you come to a stop, the box will still change down to 1 by itself.
Also, if you are in either of the auto modes ("D" or "S"), you can override this with the paddles and gain temporary manual control of the shifts, and as long as you use the paddles regularly, it will stay in manual mode. If you then don't use the paddles for a short period, it will default back to the auto setting as selected by the floor shift lever. Also, if you manually paddle down the gears for greater engine braking, and come to a dead stop, it will immediately revert to auto mode. If you don't come to a stop, and wish to cancel the manual mode, pull and HOLD the right + paddle for about 2 seconds, and it goes back to auto.
DSG isn't boring, either. Turn the stereo off, and listen to the "barp" sounds as it changes up at high revs, and then listen to the way it "blips" the throttle on downshifts. If you are so inclined, you can play "tunes", buy maintaining a constant speed, but paddling up and down the box, and you can also wonder at the very intelligent "kickdown" function, which will self cancel if you immediately come back off the throttle.

So, just in case there is any doubt:
<in my best Michael Cane accent>