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22 VW Taos SE FWD, Cornflower Blue
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The 4Motion models have the DSG (dual-clutch) 7-speed transmission and all the front wheel drive models have a regular 8-speed transmission. These two transmissions have different driving characteristics/dynamics which might explain the mixed reaction to the setting change. I definitely prefer the DIRECT setting on my 4Motion model and intend to leave it that way.
There's definitely a difference on the 8 speed as well. The other day I switched back to direct and with the warmer weather I prefer it. In colder weather it seems to lock up the TC less in direct mode (to help the fluid warm up faster I imagine) but when it's warmer it spends more time locked up in direct. Personally I wish they'd have gone like Mazda and if you aren't going at walking speed or less the TC is locked up- but besides that, I can confirm there is a difference in behavior on the 8 speed as well.
 

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I have SE 4Motion w/IQ Drive, I did switch to ECO Mode a while ago and just leave it there. As said I have a fun car so this is basically to drive to the mountains and back 2 or 3 times a month and i got to tell you on the open roads with the IQ Drive it's a pleasure to drive. Even around town i like it but no doubt there is jerky starts unless you learn to drive around it.

If you want to take off without the jerky try stabbing it fast to 1/4 or 1/3 peddle from dead stop and you will find a sweet spot and say, Oh Wow that works
 
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