re: My asst is looking at buying a VW Touareg with AWD and V8... Any insight?

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Computer can't handle the different tire circumferences has been my experience from actual experience.

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Well, yea. You shouldn't have staggered wheel diameters on an AWD vehicle. And even if you do replace an older tire with a new one from a blowout (happened to me a couple weeks ago) the difference is so small that it won't tear up the differential or anything.

My Yukon is AWD and it's somewhat grown on me. I like how predictable it is in any weather condition.

I will say this about AWD vehicles though... They absolutely chew through tires. I drive a bit more aggressively than others but you will see those front tires get chewed up faster than usual. It has surprised me but it's something I'm willing to deal with for the benefit of AWD.