Sway bars like the O-bar are great at limiting the side to side motion without increasing ride harshness.
I agree with John Koch there for the most part; and I can't quite explain it; but I guess the rear CAN stand to be a bit more stiffer. Also, the change in handling even when not pushing it to those tire-lifting limits, is a vast improvement. I know it's faster to keep traction on all 4 wheels, well should be. It's also a little fun when the rear steps out a little bid due to just a little too little traction.
Doing just a rear sway bar is 'more fun'; but doing front and rear should TECHNICALLY make you faster. I didn't notice a big change in side-to-side roll when I added a front aftermarket sway bar. I'd already had the rear on and it made a huge difference. I was using autotech lightweight sway bars though.
Another thing that'll help you out is getting some lighter wheels. You've probably heard the terms rotational mass, and unsprung weight. The wheels are both. Has that byproduct of making a large visual impact on the car too. Since there's 4 wheels, just a few pounds adds up real quick.
For being not-intersted in racing, I'd say those 2 changes would set you up pretty nice. If you want to go a step further, look for a shock/spring combo that lowers you about an inch. With the small amount of drop you'll still have plenty of suspension travel and won't have to have real stiff springs; so you'll retain alot of comfort. Sitting in the bug you KNOW that thing's got some serious headroom... bringing that top down an inch like this will make a noticable improvement. The slightly stiffer springs will also make an obvious +.
I really wouldn't go further than that. Not for what it sounds like you're going for. Autotech sells a shortshifter for your bug for 'bout $40. Cheaper than the B&M, and easier to install; but doesn't make as big of a difference. Another cheap change you can make is to shorten the shift lever. Short throw shifters, and shortening the lever will both make you put more 'umph' into shifting, but will reduce the distance and maybe give you some of that feel you're looking for.
I also saw that the connectors for our cables are really kinda soft... You COULD fill in the corners w/epoxy to really tighten up the action, but that'll bring more (probably barely any) vibrations into the shift knob as well. Check diesel geek installation instructions to see how to remove it and maybe you'll see what I'm talkin' about:
http://www.dieselgeek.com/images/unloaded.jpg But these holes are what I'm talkin' about, I believe OURs look slightly different than that picture.