OP - an explanation for your oil usage: if you drive the car sedatley, and rarely rev the engine up much, you will find that your oil consumption increases. the reason for this is because at low engine speeds, blowby gasses increase the crancase pressure and carry oil vapours into the intake.
furthermore - on the odd occasion that you give it full throttle, all of the built up oil in the intake tract of your engine (which is long on a modern diesel) gets sucked in and burned - causing extra smoke, on top of that caused by likely partially fowled injectors.
to top it all off, if the car has been driven sedately since day 1, its likely that the piston rings are not bedded in as best they could be.
all of these things add up to the simptoms you have described.
no-matter what the dealer, or anyone else says, there is no real "normal". the fact is that the reliability and charactersitics of your diesel engined vehcile are vastly governed by the way it has been treated throughout its life. sheer statistics tell the clear story that a good diesel engine is one that is maintained well and used frequently, and often to capacity. if you're driving style does not take care of the second part, you'll probably just have to live with the smoke 
i hope i've helped you to understand better.
'07 Touareg V6 TDI with air suspension
'98 Mk3 Cabriolet 2.0 8V
'99 A4 Quattro 1.8T
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