FINALLY! After countless hours of research I have found an actual clue from which I have a high degree of confidence gives me a sense of direction on this.
I was pretty sure that the hose has to pass out of the engine compartment and along the inner fender well somewhere. Find a picture proving this was something that I just couldn't come up with: no one seems to take any pictures inside the well up around the 10 o'clock to 11 o'clock position (toward the rear). But, here is couple:
https://forums.tdiclub.com/showthread.php?t=58057
The link may be recognized as non-trusted. I have to instruct my browser to go there despite it giving me warnings of impending doom. For those who are untrusting here is the picture of interest:
The hose is wrapped up in tape. It's combined with the passenger side marker (US) and, I believe, a wire that goes up with the hose to the squirters (heater?).
For better context this MBAC VAGS Mk4 fender removal video (stop it at the 255 second mark) shows this passage and the hose routing up and over top up to the hinge area:
https://www.youtube.com/watch?feature=player_detailpage&v=nOLYs4vXhy8#t=255
I'd seen this video before but couldn't really make out what was there. It looks like wires (and, well, there ARE wires there, as well as it all being taped up- not something that is typically done to hoses), so I had pretty much dismissed it.
Anyway... I'll pull the passenger side wheel and yank out the wheel liner. I will be SURE to snap a picture of this! And, I'm pretty confident that the break in the hose will be located right there as it bends out from the engine compartment: should be a pretty good area to splice- I'll look to provide some extra protection.