I too wrestled with the *#$%@^ water pump in my 86 after an out-of-the blue
complete blowout 100 miles from home late on New Year's Eve. Two days later
after having it towed by company and friends, I considered removing the
crank pulley*, dropping the engine and all the other choices you
considered. Finally, long extensions on allen head wrench (from bottom of
engine) plus lots of Liquid Wrench did the trick. It is a hard job, but
take heart: this was the first replacement after 10 years and 150K miles.

Sometimes, hammering on a vice grip clamped tightly on allen bolt can save
the day. You'll replace the bolt anyway.

*Don't pull the crank pulley!!!!!!!!

It's worth the $75 for the VW shop manual if you don't already have it.
Good luck.

Mark