I like this. I've gone to MANY unexpected places and rough, rough roads in my B5 Passat Wagon, very similar in fundamental design. With the 1.8 and manual trans that car still pulls 27 mpgs on combined cycle driving running a 91 octane APR tune. I still daily drive it with over 250k on the clock...runs like a top, tough as nails. Reminds me of the old Mercedes and Volvos in terms of long term durability. Maintain yourself and get to know it. VAG built some VERY good products in the late 90s, early 2000s. My passat was extremely easy to work on with a little research.
I heavily contemplated an Allroad but fuel economy bothered me so I grabbed a salvaged XC70 that I've been working on instead. I still lust over the Allroad because a manual trans was available and the Volvo just doesn't have that German car, fun to drive factor...feels kind of like a European Buick. Transitioning to an automatic has been the most difficult thing for me. Now I'm getting ready to install a 2" lift which will put its clearance above most stock SUVs and almost all stock crossovers. I love the car based platforms...only thing I ever really worry about is underside protection for the aluminum oilpans and no low range. The first can be fixed...the later is just a fact of life.
Keep the project up. With added power, AWD and the ground clearance over my B5 I know that car will get you places and be a joy to drive