I've driven the Prius a lot as a rental and, while I don't care for them personally (numb steering, poor handling, etc), they are practical and reliable vehicles. The newest models of Prius have a much nicer interior than the older models as well.
If you want an appliance-type car, the Prius is exceptional. It's a point-A to point-B car for people who don't care about sportiness or driving feel and in that capacity it excels. If you are looking for something sporty, the Fusion will offer a much better driving experience, but it's difficult to dispute the pure boring practicality afforded by the Prius' body style.
ZV
My wife has had a Prius for almost three years now, and I basically agree with what ZV says-except the poor handling part. We've never ever had poor handling in it, in fact it is suprisingly excellent at handling snow (unless one foot or deeper-it has small wheels).
The only complaint I have about the Prius is tire wear-at about 37,000 miles we are due for a new set of tires.
As for the Honda, there was an article in the newspaper recently that Honda sent out a software "fix" recently that absolutely kills gas mileage but extends battery life-apparently Honda has experienced a rash of battery warranty claims in the South. Research this carefully if you decide to go that route.
As regarding the VW, I currently own a VW (Passat) and have owned a couple of bugs in the past, but I greatly doubt I will ever buy another VW again. The electronic bugs are ridiculous and expensive, and VW has intentionally designed their cars now to prevent you from working on them. I need a special tool to change a headlight, for Pete's sake, and can't do even an oil change without a lift. Plus diesel has been at least fifty cents per gallon more expensive than gas here in New England for at least three years.