Hey Jmartz. I feel your pain.This thread I started mirrors your experience.
http://forums.tdiclub.com/showthread.php?t=425386
I'm hoping there can be some kind of software update. You could always go third party through crutchfield or something I guess. I bought an awesome unit for my old CRV through them. Pioneer. Had all the bells and whistles and a Garmin "brain" to run the nav. Looked better than the OEM! The problem of course with our new MK7 is integrating it into what is already an awesome and visually cohesive interior. I suppose there will be a harness that connects 3rd party head units and I suppose there will be dash kits to get it to fit...But it's not the same. The car is great in every way and the NAV is not even worthy of being in it. I agree that less expensive "bargain" cars have done it better than VW.
FWIW never mind the dude that said "Didn't you know when you test drove it." Don't feel bad. I once traded a car in after 3 weeks because the seats were awful and uncomfortable. Sometimes you don't know until you live in it.
In the meantime lets hope that apple carplay or some kind of firmware or software upgrade can make this thing worthy of the rest of the car.