Sludge and other issues

We have an '03 B-6 with the 1.8 T motor. I have developed a love-hate relationship with the thing. It's a wonderful car to drive, but has developed some serious issues lately. I put 20-25,000 miles a year on it, but drive it gently enough to average 35 mpg to and from work. It gets all the scheduled service at the dealer.

History of the car as follows; At exactly 60,000 miles, my wife was driving on the freeway in moderate traffic when the car just stopped. She was able to safely get the car to the side of the road and get it towed back to the dealer. Seems that the right side overhead cam-shaft just snapped. They had to rebuild the whole top of the engine. I had them replace the timing belt and follower at that time. After much discussion with the dealer and Audi USA, I was able to get them to cover the cam shaft problem under warranty (which actually expired 10,000 miles prior to the problem occuring). I told them that this should NEVER happen, so it must have been a bad casting. They agreed and corrected the issue. At just over 100,000 miles, the transmission control module went out . The local transmission places wouldn't touch the CVT transmission. Had to go to the dealer which charged me $2200.00 (I was able to negotiate it down to $1800.00). Two weeks later, the water temp sensor went out. I was able to change that myself. Three weeks later, the water pump went out (On our way to a New Year's Eve event! Got the car to a nearby dealer, and had to rent a car to go the rest of the way... NOT one of our better weekends). The replacement of the pump was $800.00 not including the rental car.

That brings us to the present. A couple of weeks ago, we were on a trip from L.A. to the Bay Area (Car ar 107,000 miles). We made one stop outside of Stockton without any issues. When we got in to the car the following day to go to Livermore, the oil light came on immediately. I initially thought it was oil level. I added a quart but that didn't do anything. We drove to Livermore and I got on-line to check on what could be the problem. It seemed that it was oil pressure. Affraid that I damaged the motor, I got it to the local dealer to check out. They advised me that it could be a sludge problem and would look into it. If it was oil starved, the cam bearing could become scored and that meant replacing the whole $9000.00 motor ($700.00 just to diagnose!). The next day, they told me it was a sludge issue, but the motor was fine. Oil pressure was suppose to be 55 or greater, but was down around 30. They told me that the factory memo fix was to flush the motor, replace all the EGR lines (with LARGER ones!) and oil lines along with the sump and pump among other things at around $3500.00. What choice did I have?! After all the other recent repairs, I just couldn't afford that so I had them do everything but replace the EGR lines (Which they said they have never done a partial repair like this before...). The total out the door was $1800.00 not counting the rental car to get home and the airline flight to return to pick up the car at the end of the week!

Seems to me to be a factory defect that AUDI should cover! I have NEVER had an issue with ANY OTHER car or truck that I have owned where sludge built up in a motor to cause damage while following the factory guidelines on service. Anyone have any suggestions as to what I should do now? The service rep said that I should sell it quick! Now that sure says alot about Audi products.... Did I mention that a coil pack failed on the freeway on the way home from work yesterday?