I hate to say but so many of you just compare a VW against another Vdub rather than what is available in the market at large. Sure I could find some way to justify the extra $$$ for a R32 against a GTI but compared to others out there it needs some help.
Personally I think the GTI offers more bang for the buck than the R32. As always there is a point of diminishing returns. Sadly in the US, the VW nameplate means "inexpensive" rather than a more upscale marque as it might as in Europe. Americans for the most part haven't forgotten the first Beetles and Rabbits. It is hard to convince a large segment of the population that a Golf can cost you almost $40k! So many cars at that price point will run rings around the R32.
In the 20k range, there aren't that many competitors the GTI has to worry about. In many ways the R32 has a lot of competition from the GTI.
If they had given it at least 300HP from the start, I would be highly interested in one. In reality the R32 will even have to be wary of even some SUVs. An Acura RDX will likely beat it 0-60 (6.4 0-60) and the V6 Rav4 is pretty close as well. Of course the R32 should dust the Rav4 in handling but the RDX is pretty damn good with its SH-AWD.
What I love about the GTI is for just a few grand in tweaks, you can have a pretty darn quick car (13 second) that doesn't attract too much attention. No big giant boy racer wing like the EXO or STi. I love to drive fast so stealth is the way to go. A 4 door GTI is perfect for fling along pretty unnoticed.