Stuck on the path to take with the car.

Option 1 is to get staggered wheels with fairly low offset, which would require 205 or 215 tires up front. These work just fine for my current setup, I loose traction here and there, but overall it's not bad. Also get some bodywork done, like shaving few things on the front end, and maybe the back as well.
Option 2 is to go big turbo since mine will eventually fail, probably k04 or something of similar size in ball bearing. But with this option, running 205/215 tires is just stupid. Which means I'd need wheels with higher offset, probably 8-8.5 wide all around and 225/235 tires all around.

Here are my thoughts on this...option 1 is great because I can have a nice car to drive daily, and my GTI will never be a race car or see track (maybe a dragracing event once). Plus I can use 3K on exterior work or interior instead of big turbo. Also big turbo would mean potential problems with rods, DSG...neither of which I want to deal with. But, option 2 would kick ass...to have 300-350 to the wheels will make this car even more fun to drive on the freeways. Also since my turbo is going out, this would be the best time to upgrade. Speeding tickets are also expensive.

So I'm not sure what option to go with here...both sound really good. I like the look I'd achieve with option 1, but I also like the idea of 350hp under the hood. 

Option 3 is a slight possibility, but it would be to keep the car as is. Drive it until I get done with school and have a full time job, and get myself something like a 650Ci on super wide 20's and slam it on possibly air. More than likely I'd want one in silver with red interior...maybe the convertible.

id say option one. like you said, you dont really race it much. with the right wheels and some cleaning up it'll stand out so much from the rest. you can sell your stock huff's, and use that money to get some badass wheels...go 9.5 or 10 in the back!!