If there were any serious concern about fuel prices would ulta-fuel efficient (EPA 38MPG City 46MPG Highway!) cars be on the clearance table at Filene's Basement?
I don't think that's "on the clearance table." VW sells a decent number of those.
That said, the diesels certainly don't get the attention of the gasoline-hybrids.
Edmunds.com is doing a long-term test of a Toyota Prius. The bottom line: they hate it. It is underpowered, and the steering is awful. They get a little above 40 mpg, which is just about the same as the Jetta TDI, which is a lot more fun to drive.
Diesels got a bad reputation in this country, thanks to GM. But, time and technology has moved on, and the time has come to grant some tax and regulatory breaks to allow these engines to become more prevalent, as they offer greater efficiency and fuel flexibility.
That said, I do agree with the point that people aren't all that concerned about the current fuel prices; the media have been overplaying them. Adjusted for inflation, they're not even close to the historical highs set around 1980.
Note that there is a NEW Jetta for 2005.5 and that may be the reason to have to put a lower price on the old design to clear them out.