beware VW turbo repair scham 4458

I hate to say it but I agree. I've owned several old Beetles (going back to a '58) and also a '98 Beetle (gasoline, non-turbo, five speed) which I leased when it first came out -- it was a hot item like the Mini was recently. I only got up to 70K miles on it, not long enough to experience serious drivetrain issues, but during those three years it went through FIVE headlights, two driver's-side window switches, the rubber headliner strip coming unglued, and the rear electric hatch switch failing. Even today when I see a new Beetle driving past me with one headlight working, I'm reminded to stay away from the brand until they work on their supplier issues. To be fair, I did have a lot of fun driving the car.

This is where black electrical tape can come in handy. You place a small piece of tape over the "check engine" light. Voila. I've done it, and I've been through more cars than I can count.

Same thing with the new Beetle. I considered having it lifted an inch or so, but wasn't worth the trouble.

Is it possible to simply remove the turbo and run it as a normally aspirated car?

I do give you credit for getting the diesel though...they do get better mileage and the only unfortunate thing is that VW put a turbo on it (apparently to boost power, since diesels are known for being a bit lackluster in low-speed acceleration.) Diesel fuel is also cheaper than regular in most places.