Yeah I was speaking in absolute terms. Pretty much all the major cars in the affordable sub-compact class are: cheap, reliable, fuel-efficient, and easy-to-drive.
I agree with you though, the reason people prefer the Corolla over its peers is what you and danielj said: reputation/history and word of mouth.
And that is where I do think the 2.0 WOULD hurt the Jetta the most but when 90% sold are the 2.5, I would say the 2.0 is largely irrelevant for more than advertising a low base price of the Jetta as a whole.
That's all I am saying. Sure, the 2.0 sucks. We know this, VW knows this, consumers know this. The ONLY reason it is there is to keep the base price under $17k which is class competitive.
JUST removing the 2.0 and having the 2.5 as the base car would take the price from $16,xxx (mid-pack) to $18,875 (most expensive by more than $1,000).
SAME CAR, SAME SALES, COMPLETELY DIFFERENT CONSUMER PERCEPTION IN THE MOST PRICE CONSCIOUS GROUP OF BUYERS.