Not so great driving dynamics and a VERY expensive price is what really hurt R-model sales. I remember all of the fanbois claiming that all 5000 R's would be sold before they were even loaded on the boats. $36K is a boat load of money for a car that's only marginally better than a GTI (in some ways). For the same money, and in some instances for less, you could find a much more enjoyable car for $36K. Many dealers still have new R's on the lot - my local dealer has at least one.
The K04, AWD system and better looking grille/LED lights IMO, make it worth the 3k more I paid over the autobahn