you do have a valid point, but at the same time he asked for a car that would not embarrass him for under 5k. You can not be embarrassed in a MK I, they are classics and you can find plenty that are not rust buckets and in solid form if you know where to look......
I'm just a fan of classic cars like that. I'm actually looking for an E30 to autocross here in a few months. I know they won't be the most reliable vehicles on the road, but they would be something that you could slowly rebuild, turn into something that is your own, and be able to work on in your driveway unlike a lot of new vehicles that essentially mandate you take it to a dealer/ shop.
But I do agree with you, if you want something a bit more solid a newer MkIV jetta, golf, might be in your price range and still a fun little car. I just happened to be on stance nation earlier today and say a baller Datsun that made me think of old cars that still look awesome.
But like most others have said, find some run of the mill Honda, Toyota, etc. they will get you from point A to point B no problem and be a more sensible, albet slightly more boring IMO option. I'm just not very sensible when it comes to my car.