Your concerns are well founded. The mass recall they had was well publicised and well discussed on all the forums.
But ultimately, it's a personal choice. Buying the diesel will buy you peace of mind, at a cost to purchase price and service cost.
When I bought mine, I was concerned by the reliability of the 7 speed too. But my research through the forums and long term reviews had only uncovered a handful of complaints about the 7 speed in mk7. Most were dealt with by the dealers to the owners satisfaction. It was by no means, wide spread. (IMO, there are always going to be lemons doesn't matter what car you buy, and these are most visible through forums as is the nature with online forums.) end of the day, VW would have sold 10s of thousands of Mk7 Golfs with the 7 speed DSG in them. If there are only a handful of complaints on forums, well that's a risk I can accept
You should test drive both Tdi and tsi if you get a chance, while the 6&7 DSGs are similar in behaviour, they each have their own little quirks. Nothing to be concerned about, will just take some getting used to

(specially if you currently drive a manual, or a traditional automatic)
Also, try to schedule an additional test drive in peak hour traffic so you get to experience stop start traffic with the DSG
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