I sold my 2004 GTI 1.8T last week. It was a tough decision but with the constant climbing cost of gas (the required use of premium fuel didn't help) and the possibility of a growing family I needed to get something a little larger and more fuel efficient. (Especially with my forty mile round trip each day to work.) I sold her to a couple from Charlottesville, Virginia and I'm confident that she will be taken care of very well.
I debated long and hard about what to replace it with. Brand loyalty is a powerful thing especially given that I've owned and driven nothing but Volkswagens since getting my license fifteen years ago. It came down between a new 2012 Volkswagen Jetta SE and a 2012 Toyota Corolla S with the latter ultimately winning out. The engine is not quite as powerful as the Jetta but feature and space wise I was able to get on the Corolla pretty much the same as what I could get on the Jetta for several grand less. I also know from experience with my wife's 2003 Corolla S and various Toyota's that my in-laws have owned that they're very reliable, low on maintenance, and easy to work on. Still, it was a very tough decision to make. (Knowing I'd never hear the end of it from the wife if I went with the more expensive Jetta also factored into my decision. :) )
It's given me renewed motivation though to make progress on the Bug so I can have a Volkswagen to drive. Hopefully by next spring I'll have additional money available to make another round of progress. Stay tuned for updates.