EDIT a quick thing to throw in... might have already said this i dunno
I may say stuff about the throttle opening restricting the engine and all, but i dont know how much real basis there is for it, only hearsay

VW may not reccomend it, but i tried repeatedly going down a short but steepish hill in gear but with the ignition off (feels no different to the over-run cutoff...).. however much i had the throttle open seemed to have little difference on the engine braking. Fully open seemed similar to fully closed (and as ignition was off, no ISV to prop it). Just a seat-of-the-pants measurement in 4th and 3rd, but its a hmmmmm....
no matter how much air you let in, the compression effort is the same?
anyway
/EDIT
now *my* brain is hurting
think i'll have to retry the economy thing one day when i get a chance, but try to measure the fuel more reliably - coming to think that the tesco's pump cannot be trusted....
(how could i do that though)
first off i have to capitulate and apologise that i did indeed get the ratio wrong for my own 4-speed box.. it IS 4.267... and also i fluffed up the speed calculations in my own spreadsheet (got the tyre rolling circumference completely ballsed). so lots of room for improvement there. makes things look a little harder that i'd hoped, but still... there's goodness to be had
now back to the arguing!
course it's going to be uneconomical to go up a hill in 4th at a low enough speed that you have to change down, thats not what i'd be aiming for anyway. i want/ed to gear the car up higher, but it still had to be usable - not a case of reaching 70mph at 2800rpm on maximum throttle* and then having to change down any time there was a slight incline. It's for a cruising gear to be used on "wider", but not fully open throttle between say 50 and 70mph. For situations requiring full throttle for more than the few seconds a small rise in the road would produce, there's always 4th, or 3rd.
Somewhere between 20 (70@3500, 50@2500) and 23mph (70@3050, 50@2200) would be just right, with an increasing trade-off between maximum possible speed vs economy before the practical limit of sustainable speed is reached. Any ratio within this range would still allow for very comfortable cruising at 55... my foot is giving maybe a quarter throttle to the engine in 4th, which must be approaching the point of suffocating it and not so great for fuel mixing and swirl effects etc. (he said, relying on the flimsy logic of It Stands To Reason more than any solid engineering principles)
I still dont see how using full throttle at max torque can be any worse than part throttle at a higher rpm... i have a feeling graphs would have to be involved

I mean yes the throttles open wider because i'm having to make use of more of the motor's maximum potential at that speed, but that potential is only lower because it's spinning slower. It's still putting out as much grunt per spin, in fact more so, and quite likely being more economical with it. Again to take the argument to it's logical extreme, i'd be better off running it at 5200rpm up every hill, as thats where the maximum powers at? That even goes against the reccomendations for economy in the handbook. What's the difference btw of it going up against a hill, against wind resistance at high speed, or it's own internal friction?
Sure if i was going up that hill at 2000rpm, there'd be benefit in changing down, as by then i'd be dropping into the engine speed range more attuned for cruising around the city at part throttle with a general power demand of maybe 5hp, rather than attacking any kind of hill.
* oddly enough at that point the (theoretical) power output - 29hp - and maximum speed would be the same as that of a Citroen 2CV.. except my motor would probably be under less stress and running more frugally, as the gear ratio would be 25/1000 to the 2cv's 12...!
At the mo i think Metz's saloon 5-speed would be just about perfect, the one that's like 8P but with the same final drive as mine, particularly on my slightly smaller 155/70 tyres. In fact i only ran across this post again cuz i'm looking for the one where he metioned it - i want to find out how quick it'll go in 5th as opposed to 4th. 8P looks almost too high now (especially 4th being a touch too steep... and a 22.3/1000 top, making 75-80 about the max speed), but still a contender of sorts on the right tyres and with a small power boost.
Using the figures out of the back of the mk2 haynes as reccomended by yourself (and correcting the typo of "65/18 = 4.063"), heres some rough estimates... assuming 145/80 = 22.5 inch diameter and 155/70 = 21.9 inch
On standard 145/80s --
8P 4th = 18.5 (88@4750?), 5th = 22.3 (78@3500?) ...
metz's AYZ/etc 4th (and mine) = 17.6 (91@5150), 5th = 21.2 (83@3900?)
On 155/70s, 135/80s or similarly smaller (& wider?

) tyres --
8P 4th = 18.0 (89@4950?), 5th = 21.7 (81@3750?)...
metz/my 4th = 17.2 (91@5300, just right), 5th = 20.7 (85@4100?)... plus slightly lower ratios (that i'm already "enjoying") in 1st thru 3rd.
If that's accurate however, my dials need recalibrating something rotten!
Hmmm.........
nice knocking heads with ya anyway