VW used and recommended single weight oil because multi-viscosity oil was more expensive when first introduced. As the single weight did an adequate job, oil changes were done fairly often (there was no filter) and this was an economy car, in their eyes there was no reason to use something more expensive. We now modify and use these engines in ways the elves at Wolfsburg never dreamed of (think 2,000-2400cc street engines that rev to 6500-7,000rpm with power and live over 50,000 miles), and multi-viscosity oil is so much better at doing the job of lubricating and protecting an engine that I don't see why anyone would even consider a single weight oil. There are break-in oils for new engines made in single weights, but they have a specific purpose and are meant to be dumped after only a very short time.
Oil weight is a subject with a huge difference in opinions- It used to be that people thought that a heavier oil did a better job of protecting an engine, but this isn't necessarily so. Oil pressure is good, but more isn't always better; your engine also needs oil to flow through the bearings to lubricate (especially when first started up and it's cold) and remove heat. People are finding that (in aircooled VW engines) what works best is when the engine has approx. 10lbs. oil pressure per 1,000rpm; at idle it will have 8-10lbs, 2,000rpm about 20lbs, 3,000rpm somewhere around 30lbs, etc. This serves 2 functions, the first of which the oil is light enough that it starts lubricating (especially the rod bearings) much sooner. Gene Berg claimed that when they started using a lighter oil in their drag race car (close to 10,000rpm in first and 2nd gear), they went from replacing rod bearings after every weekend to them lasting the whole season.
2nd benefit- Engines with heavier oils can develop enough pressure at higher rpms that at highway cruising speeds (3,000rpm and up) it can cause overheating by closing the path to the oil cooler. Remember, this passage way is controlled by a spring/piston that is pressure regulated (a simple, elegant solution, as temperature regulation would have cost more money, and this was an economy car), and anything above 45-50 lbs. (the official VW figure is 48lbs.) will close off the path to the cooler, as the engine is acting as if it's cold and the oil isn't sufficiently warm enough.
A few years ago a friend drove to California with a new engine in his bug (2 liter that revs to almost 6500rpm with power) and found that it was running hot when he got to Los Angeles. He was visiting some VW people in the area and when asked what weight oil he was running (20w-50) they told him to put 10w-30 in it and the problem was solved. Last year he drove that same car (and engine, now with some 60,000 miles) as far south as Panama (iIrc).
Brad Penn is popular with the aircooled crowd these days, having enough zinc to satisfy our engines' flat tappet/cam lubrication requirements, as well as Valvoline's VR1 line. If buying Valvoline make sure you get the street oil; the racing oil has no detergents and is meant to be dumped after every racing session. There are others, but those are the 2 I can think of at the moment. Hope this helps. Al