Well, as everyone has already said, the Touareg in certainly lots of fun to drive. And this is coming from a 16 year old high school student. I got my car with my permit so I've been driving it for over a year now (almost 17, permit obtained at 15.5). I've driven lots of other cars too, from my parents cars, to my uncle's Gallardo (around the street), to my friend's X5 and X3, to my girlfriend's Jag, and my friend's loaded Jeep Rubicon, and other friends' Scion xB (the box one), Mercury Mariner, 3 and 7 Series BMWs, Honda CR-V, Range Rover, Escalade, Chevy Avalanche, Grand Cherokee, Boxster, Continental GT, A4 and A8, Mustang, and Spyker. Also a '90 Toyota Camry that we would take into the desert and have some fun with until it died.
Anyways, comparing to these cars, I must say the Touareg handles much better than any SUV I've driven. The Mariner was sluggish with it's 4 cylinder engine and the interior comfort wasn't exactly on-par with anything luxurious, the Jeeps were also sluggish (probably due to the fact that my friend's Rubicon is loaded and lifted and has a hard time getting up to 80 mph). Even leaving it in 1st, it has some trouble getting off the line quickly. Although, to be fair, when we're driving and stuck in traffic, my friend will take us through desert shortcuts I would never dare take my car through...even though the Touareg could likely handle it without getting everyone dusty (Jeep has no doors or roof).
The Escalade, Avalanche, and Range Rover all had nice interiors, but I still didn't feel the luxurious element was that strong. It was more of a "large and comfortable" feel, but this translates to a driving experience that leaves much to be desired. Driving my friend's Avalanche out to the lake (we took turns because it's a long drive), I was going about 110 on a desert highway. The car certainly didn't feel like it could handle going at high speeds very well and the interior cabin noise from the wind resulted in an increase in music volume. Turns at such speeds would also result in a lot of body sway. Going to California with friends or to look at colleges (I'm a young senior), I would pull 120+ easily with no excess interior cabin noise and no body sway for turns- in Arizona, not California. Arizona highways are built much like the autobahn with wide sweeping turns and 12 lanes (6 each direction) in some parts. California highways are simply atrocious.
I found the driving experience to be most similar to the A4. My friend's Mustang, although not equipped with a V8, is a manual transmission. This allows for lots of kick off the line and an overall fun experience but the interior is far from being considered luxurious and car handles like a boat with its long engine bay. My girlfriend's Jag's interior was on par with the luxury in the Touareg but I prefer the Touareg's leather, personally.
As for the Gallardo, Bentley Continental, and Spyker....well, those speak for themselves.
All I can really say is that the Touareg handles like a sport sedan, is quite capable off-road, has a luxurious interior that is on-par with all major luxury car makes, and has an exterior that is certainly easy on the eyes...in my opinion, the nicest looking SUV (Range Rovers and the X6 can have nice exteriors too, but the Touareg is simply the best...In my opinion, over the Cayenne).