I stopped by the dealership this weekend and sat in it, but didn't test drive it yet. I too am growing the family and looking for something to fit 3 carseats in the rear...
The Passat was HUGE. I'm 6'1" and had >6" sitting behind myself (I adjusted the driver's seat to maximum comfort). It was also very wide.
We are looking for a super efficient family car which puts us in with TDIs and the larger hybrids (Fusion, Camry, etc). The 11 Jetta seemed like it might work, but after sitting in the Passat, I think my wife was sold on getting a mid-size. Afterwards we went over to the Ford dealership and got in the Fusion. My wife and I agreed that it felt more in the class of the Jetta than the Passat. It was slightly wider than the Jetta, but nowhere near the Passat.
I know there has been a lot of complaining about the "downgrading" VW did to the Passat, but from my perspective (and maybe yours, too), I need an affordable, larger vehicle that gets good mileage. Compared to the other options in that category (Camry and Fusion Hybrids) on aesthetics, etc the Passat is IMO the clear winner.
Now to actually test drive them...
P.S. It is possible to get 3 carseats in the back of an '05 Golf, but man-o-man is it tight!