Mate of mine has a Scirocco with DDC. Feels pretty damn smooth in comfort mode. Although you'd expect that in comparison with a mk5 on coilovers. AFAIK DDC was brought in with the mk6, which is essentially a facelifted mk5, so theoretically DDC would 'work' on a mk5 - but getting all the electrics right might be asking a bit. I can't remember seeing any mk5s on here modded with DDC parts, so I'll take a punt and say it's too much work to be worth it.
If you don't want to change the car itself you might have some success in simply renewing the key suspension parts. So new OEM dampers, bushes, top mounts etc. There might even be an aftermarket solution, like Koni FSD dampers, that get you a bit closer to the plush ride you're after.