It kind of sounds like another faulty thermostat. Mine's just gone, very similar symptoms. Mine wouldn't get anywhere near 12 o clock on the dial, where it has always been before. It blew lukewarm out of the vents. If I sat in traffic, it might get up to 12 o clock. I never could tell if it was running rich or whether the engine was clever enough to compensate, but I think it probably did run rich constantly as it thought it was excessively cooling the engine.
Just replaced mine as well. Pretty stupid job on a Lupo GTI. The thermostat housing is right next to a gear linkage which leaves you very little space to work in, unless you start moving or removing crap. 15 minute job becomes an hour job.