I've owned about 140 cars and my '79 Rabbit Diesel would make the top 10. Build quality was exceptional.
We had it slightly tweaked (fairly open exhaust and advanced injection pump) and the power level was acceptable... it would cruise 90mph all day long. Handling (also tweaked slightly) was very good.
It did smoke like a chimney under full throttle though... more acceptable in the 80's than now. I think a much better combo would be a German-built MK1 like this with a later turbo diesel drivetrain.
Interestingly, my parents liked it so much they bought an American made '82 model new. Had I owned it, it would have easily made the bottom five cars... as bad as anything I'd driven. We ended up giving it an 8v GTI gas conversion later... and it was still a crappy car.