If you drive it like an auto, it'll be jerky and you'll get shuttering. It's as simple as that. Was in a friend's Volkswagen today and it felt almost exactly like mine. If you drive it more like a manual, it's just as smooth as any traditional automatic.
That being said I'll reserve judgment for it until it's seen at least 100k miles, and hasn't had any issues. Don't really care how fun or awesome or cool it is if it breaks at 50k. I might change my mind if the paddle shifters didn't SUCK hard. Really not terribly fun to drive in that mode, computer still takes over all the time, and shifts aren't as quick as I'd like them to be.