Yep. Well, someday even VW will offer a Diesel-electric hybrid, and then everyone can have the best of both worlds.
Unfortunately, at least here in the U.S., diesels still STINK to high heaven. It would help if there were a hybrid version that shut off at stops, but given that all the busses and semi's sit and idle while their drivers are elsewhere (presumably there is a good reason for this), I sort of doubt it.
Is this true of the new VW diesels? I've a friend with a brand-spanking-new VW diesel Golf, and it hasn't been readily apparent. However, I haven't gone around to the back of the car while it's running and taken a good whiff. (I'm afraid he'll accidently run over me. )
I prefer the reliability of a Toyota. See Consumer Reports for the facts. However, as the article says, the Prius at a few thousand over MSRP might not be worth it (for some).
My father-in-law owns a ~'00 VW diesel Jetta and after he got the bugs worked out over the first 2 years (including one engine fire!) has had no further trouble and even standing behind it, it does NOT STINK!! However, there are still a few issues with regards to tailpipe emissions as noted in the article. Not gaseous so much as fine particulates which raise their own health and environmental issues. That is why after looking at both VW and Toyota, my wife and I went with the Prius.
All the stink and crap that people have mentioned in Diesel exhaust is mostly caused directly or indirectly by the high sulfur content of the fuel. Starting 1 July 2006 in the US this will be greatly reduced. That's when we'll start seeing Diesel hybrids.