Ya, it's a cycle for sure. I owned B5, B7 and B8, and I do think the B5 was the most reliable. The B7 was definitely worse than the B5, in terms of drivetrain reliability, and the B8 is definitely worse than the B7 in terms of drivetrain reliability, except the automatic transmission is MUCH better.
So for engine:
B5 > B7 > B8
Transmission:
B8 > B7 > B5
Interior and Quality of Finishes:
B8 > B5 > B7
So the B8 isn't worst at everything... it's just worst, primarily, at engine stuff (injectors, timing, turbo, carbon buildup, etc.). And on all the rest, it's squarely the best of the 3. But as has been said, the engine is, you know, pretty important. ;-)
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