I wasn't around when the Rabbit was, but my impression of the name and car was not highly impressive.
A Golf is a Golf - the name stands for something: A decent entry-level VW. I know people who stand by their Golf happily.
The old Rabbit just reminds me of low-buck, not entry-level.
Bad, bad move.
The worse move was that they are using the "new VW look" - I think the new look is a downstep from, say, the current Jetta. The current Jetta looks classic, even better than the mid-90s Jetta. The newest Jetta looks... bad. Awkward taillights, scrunched up nose ... I think it's unpleasant to look at.