Like he said, you got extremely (EXTREMELY) lucky with VW doing ANYTHING to the car. I have found that it also comes down to how bad the dealership badmouths the customer to VWOA.
I personally was told by the service goons at the VW dealership at LIBERTY VW in LIBERTYVILLE IL, that's right, buy from there and expect the outright BEST (sarcasm on overdrive) service - that they told VWOA that the turbo was blown and the customer already pulled stuff off of the car to look at the car, the customer had numerous aftermarket items that aided in this failure.
Understand, they never mentioned to them what the items were, a coolant heater, boost gauge and the boost valve, which they didn't even see, they just went off of the gauge on the steering column.
They don't want to investigate. Additionally, mine was one of the first to have this happen. I was screwed before I opened my mouth and I was ONLY 5k after the PT warranty was up AND they had done repairs at 40k on the oil pump flange from a leak and noise. They also supposedly replaced that chain.
You can say you don't take "no" for an answer, and that's good, but figure out how much you're going to want to fight. If you cannot prove the mfg KNEW of the mfg defect AND it caused a 'safety' concern then you MIGHT get somewhere. IF you can get the dealership on your side, then you have a better chance.
It's WELL known that VW has the WORST customer service rating in the industry. People say they like them because they fixed all their stuff - under warranty. You have the law on your side in the case that they don't so I don't use that as a determining factor.
I have another B5.5 1.8t and I will NEVER let VW ever touch my vehicles again, ever. You'd be crazy unless it's something under warranty or a recalled item.
Ticked? nah, I'm not ticked, I was FUMING during the ordeal. Now, I just know to never buy a new one from them and never take it into them. They know this, they know there are enough of us out there doing maintenance for others and they have begun a campaign to make it impossible for shadetrees and those of us that are mechanics, to do work on their vehicles so they can keep the profits.
Hopefully we will persevere. Good luck with your endeavor but when frustration comes just smile.