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A simple engine swap is still an option. What's NOT an option is keeping the bug the way it is. The thing is a death trap!
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An engine swap won't fix that.
At least it's a 1303, not a 1302. It appears to have the bubbled-out windshield.
The half-pan idea is interesting. What is the difference in the width between the strut towers on the SuperB and on the Prius? If they were equal (or made so) it would result in a very clean result. Too bad it's not a '74:
Here's a Macpherson strut conversion on a Superbeetle,. Maybe something similar could be done to the Prius parts:
The coil-overs would have to be longitudinal. For a simple swap, I've got the Lexus transaxle but the new Toyota RAV4 or something has a similar unit with twin motors and the differential in software.
I think the open diff in the Beetle makes it deathtrap. I found out on black ice. Oops, I just contradicted my opening statement.