First of all, most Beetles understeer a lot at least initially and only then, under specific conditions, start to oversteer.
That's the problem. They're incredibly susceptible to drop-throttle oversteer. Push a car real hard into a corner and lift to feel it. It's pucker-scary, especially on a swing car with positive rear camber. That's the reason Volkswagen started installing anti-roll bars on the front as early as the late 1950s. And those cars sat nose high.
Ward's recommendation to set the front wheels to negative camber is indeed valid but you have to also understand the full dynamic and the context. Setting negative camber up front improves turn-in properties that make the car behave a lot better prior to the apex of a turn. It also tends to keep the front tire planted as the chassis rolls.
The negative is that it also induces a little bit of oversteer in the follow-through but as long as the rest of the chassis has been set properly to mitigate the oversteering tendencies in those situations. Racers also tend to favor more oversteer than understeer, at least to a certain extent. A car that's on the verge of oversteer will turn in really quickly but you have to really pay attention to keep it from biting you in the ass. The same thing goes for setting the front wheels to toe out; the car is always wanting to turn in which makes the car feel really twitchy.
Racers don't mind that; their nerves are already on edge and they're paying attention to every little thing. But daily drivers mind it terribly, especially on rutted or grooved roads. A toe-out car will wear you out on a normal stretch of highway. Those are only a few of the consequences.
I still stand by my statement that as a rule Volkswagens (remember, we're talking street here) benefit from inducing understeer. I do it for the same reason that the OEMs induce understeer in their cars: a car that understeers slightly will rattle a person's confidence well before they enter a turn. A car that enters a corner beautifully can artificially build a driver's sense of confidence and that's a dangerous thing if someone enters a corner way too hot, gets scared, and lifts. That's a recipe for a rollover or at least a broadslide into a tree in a rear-engine car, even a more modern 911.
We also have to take the other things that we do in the name of style into consideration. Lowering the nose more than the rear also induces oversteer (transfers more front weight). So in those cases greater negative front camber could be considered dangerous. You have to take the entire vehicle and its prevailing modifications in mind. It's not a good idea to just blindly pick and choose. It's pertinent to understand the dynamics of every consequence.