The RSi was an attempt to "macho-ify" the Beetle. This car has been voted on many unofficial polls as teh most "chick" car around. Following that one it is the VW Cabriolet.
VW realized the majority of the buyers are all female, and have been looking at ways to market the Beetle to males in the 18-20yo range. The new Turbo edition is one attempt, and the RSi was another attempt. Problem being that for the cost of the RSi the buyer could get into a GTI or a VR6. Now with the advent of the R32, it's likely males will move towards that car instead.
In reality, the RSi was an adaptation of the Audi TT Quattro set-up with the beetle body on it. What VW really needs to do, is produce a Baja Buggy version of the Beetle.
AO