Well, Acura used to make good looking models. I loved the Legend, integra, etc. Even the last line-up was pretty good, TSX and TL. It's only the second gen TL and TSX are a bit weird, but that is the grill's fault. The main problem I have with Acura is the fact that they use FWD.
Lexus, while they make bland cars, I won't call all their cars ugly. I won't lie though, it's not like AUDI is free of ugliness, IMO. The Q5 is pretty damn ugly and the A3, while a nice car, fails to ignite any passion in me, hell even the Mazda3 hatch looks miles better to me.
I know it's going to sound arrogant, but I really don't give a damn what people outside the US think. I live here, and my reputation, etc., is built by how people perceive me here. MB is huge here, but is a taxi in other countries, etc. But buy an S-class here and everyone goes all crazy over it.
So, yes, in the US Market, AUDI is seen as a flashier VW with higher prices. It also doesn't help their case that in most places, around my area at least, VW and AUDI are pretty much in the same showroom.