The Bug was an interesting example of an interesting philosophy of design. Start with a design that is "perfect" at least in your own eyes, then refine it a little bit every year FOREVER.
On the one hand, you might end up with a VW bug that is many generations better than originally conceived, while staying close to the original concept - but is still a piece of crap, relatively speaking.
On the other hand, take the Porsche 911. Refine, refine, refine. It's still a horrific design (rear engine, opposed six), but with all the electronic doo-dads those Germans have turned it into a car for the ages.
Then look at the H-D Electra Glide. Air-cooled pushrod V-2. Constanly refined for the last 100 or so years. Still vibrates like crazy, not very powerful, doesn't handle very well, and quite popular.