Yeah, I see where Americanizing cars has pretty near killed Toyota, Honda, M-B, and BMW.

The sales numbers don't lie. When VW was selling German-built "we don't need no stinkin' cupholders" Jettas in the mid-90s, they almost pulled out of the American market. The sales numbers don't lie; VW's sales lately are way up over previous years.
And, frankly, if any company in the VW stable should Americanize, I'd rather it was VW than Audi or Porsche.
It's tough to find a car sold in the U.S. in 2012 that's truly crappy. Not worth the $$, maybe, but incompetent at transporting humans from place to place with unprecedented levels of safety, no.
As you said yourself, people have other priorities. For most folks I know, "Handle accurately and be fun to drive" is pretty far down the list, behind "Fit me and my family and all our stuff", "Be fixable in Frozen Nose, Montana" (Suzuki makes some neat cars now. But I wouldn't drive three hours to the nearest dealer for one), and "Nice audio when I'm stuck on the Interstate during rush hour". In fact, most folks I know hate driving. They'd rather do something else. Hard to market driving satisfaction to that crowd.
Hyundai and Kia combined have not spent on ads what VW has spent over the years -- and look at them. Until Toyota stepped on the rake a couple of years ago, it had an enviable reputation for consistency of product. These companies did not achieve what they have by advertising the hell out of their products. They did it essentially through word of mouth -- tens of thousands of satisfied customers over years and years who drove around their friends troublefree and mistreated their Asian clunker out of ignorance or poverty (or both) only to find it
still ran. For whatever reason, VW has never been able to achieve that kind of word-of-mouth success in the U.S. The great question is, why not?