Uh, I don't know what the above guy means by saying German cars suck if you're tall, I'm 6'2 and worked for VW, and fit in all their cars with room to spare. We had people buy Passats and Beetles because they couldn't fit in a Toyota or Honda, and I drove around a Jetta for 4 years.
But that said, the Toyota is hands-down the better in terms of build quality. The VW has a nicer interior, rides nicer, and IMHO looks better but VW's quality is spottier, and VW's have less resale value. In terms of performance you're gonna be pretty close; neither is a gutsy car.