As a former owner of both a Rabbit and Scirrocco I would love to see these reissued as well. I did take a stab at building a copy of my Rabbit but I got overambitious with it and now it sits in carnage in its box.
Your Rabbits looks fantastic, Steve. Really makes me wish I hadn't butchered mine. Thankfully I am a little wiser about picking my battles now.
Oh, and the Omni engine...VW actually used them in 1981 or 82, so it's a kosher swap. The distributor should be located just south of the 2-3 spark plugs, center of the block and the clutch cable would go where you have it now...but I think it can be forgiven if you leave it like that because it's just so dang snazzy.
The Omni kit I pulled the engine from was an '80 MPC 024. The kit has the base engine in it which is a VW 1.7 litre. It's the same engine as in the '78 base model Rabbit I used to have.
I didn't know VW ever used the Chrysler engine.
Here's a couple pics of the engine I'm building. It's the first year for the fuel injection instead of a carb. about 1978.