I don't know why so many Germans seem to have a problem with Volkswagens, it is almost the exact opposite here in the United States. By comparison, Volkswagens are luxury cars in the classes that they compete in. There are far greater ammounts of refinement, civility, and general engineering quality.
...Relyability is debateable, but every VW my family and I have owned have for the most part been trouble free. Electronic ghosts were a problem with my '93 Fox, and the '99 Beetle had a few issues with the driver's side window (nothing that was not covered under the warranty).
I've spent time in a R32, in an STi, and in an Evo VIII and IMO, the VW was a far superior product. I look at it this way. If I'm going to spend $30K on a brand new sport sedan (R32 Coupe here in the US), I want my $30K to be applied to not only the high performance bits and pieces, but the interior as well. Of course the leather, moonroof, etc. are all available on the STi and Evo MR, but both are a bit north of the price of the R32 with those options.
Performance wise, I could care less if the R32 doesnt do quite as well. As I had mentioned before, the R32 is a much-more grown-up car compared to the STi and Evo, with a more civilized engine, transmission, suspension, interior, etc. It isn't a rally-bred sports car like the other two, and it won't make any concessions for doing so.
I've had my expiriences with all three, and my opinion stands. Here in the US things might be different, I don't know. We have yet to recieve the MKV R32 here in the United States, but it has been tested by the assorted automagazines, and their positive opinion of the model still stands nearly three years since the last graced our shores (we only had the R32 in 2004).
"Skyline Crap": Yeah, I said it and I have been saying it for years. Too many people like it just because it is a good car in Gran Turismo and base all of their opinions of the car off of the game. I'll give it credit for being a decently fast car in comparison to others in it's class at the time, but by today's standards it has been outclassed by so many cars that are far cheaper. The new R35 might be a great car, but I don't think it is going to be the "Godzilla" that the press is making it out to be. It will still have to face off with the Corvette, Viper, Porsche 911 and Cayman, along with the Exige and M3. That is seriously tough competition, and with the suggested MSRP in the US reportedly starting north of $70,000.... Well, time will tell... We have to wait untill callendar year 2008 here in the US, so we will see what happens...