I tow with my mk4 tdi all the time, it’s incredibly handy. A lot of towing is bulky stuff that’s not necessarily heavy. There’s still a time and place for a truck, or a full-size truck, but not for everyone.
Haha... weirdly, I've also done a ton of towing with MKIV ALH TDIs. They're absolutely excellent vehicles for towing, and hardly use any fuel while doing so. Sometimes it gets a lot of unwanted attention - especially at a boat ramp, because Americans don't expect cars to be able to tow like that.
When I was in Ireland for work, I saw that a huge fraction of the farmers use MKIV TDIs for their farm work vehicles- they're all over the place pulling huge trailers full of livestock and hay, and still using half the fuel of most cars that are unloaded.