VW recommends 91, but you can put plain unleaded and the engine will adapt to it.
The MKV Golf/Rabbit started selling in Europe 2-3 years ago, they held out in the US until now. It's just the thousands of people who were drueling for 3 years.
On another note, I have one year old Touareg and I am happy to say that I have had 0 problems (knock on wood, am I using that right?). As for VW's overall quality in their cars, I think the newer models (B6 Passat, MKV Jetta, Rabbit, Phaeton) have better reliability, especially the Rabbit, since it was on the market for about three years already before it hit our shores.
Cars like the Yaris are good in concept, affordable, efficient, but extremely lacking in soul and fun. I find that German brands are the opposite, moderate on efficiency and high on fahrvernugen, just compare the automatic trannys of a Corolla and a Jetta. Also hybrids are just plain wussie cars, it will take an owner 8 years to rake in the savings. Besides Hydrogen Fuel Cell cars, Diesel is the way to go. A TDI fed with used cooking oil from my local In-N-Out will last me a long time and will only cost me about 1.00/gal. Too bad you can't buy Diesels in CA.