Today I adjusted the cable to the transmission to make it upshift later and downshift earlier. I think my transmission was shifting a bit early, though I don't think that warrants 1000+ rpm of torque converter slip. Now I have it adjusted so that it won't stay in 4th at 45 if I give it enough throttle to do 3000 rpm. Instead it downshifts and does, well, probably about 3000 rpm. I didn't have to go so far as to make it shift like it's in "sport" mode, maybe it's just slightly more aggressive than normal.
This engine makes good torque well below 2500 rpm, it's a shame my transmission can't do anything with it.

A manual transmission would be so much easier to live with (for me anyway)...

Thanks to everyone for your insights,
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83 300CD (last project, now for sale)
87 300D (new project)
04 Jetta Wagon TDI (excellent)
96 Jetta (a bit beat but effective)