Yes, back on topic I think a link-up with VW from 2013 is pretty much inevitable. It seemed that we would get the status quo maintained for a while but a way for VW to enter the sport and give Newey the loophole central that he'd like has been created.
So, are Red Bull a small team? Well, they were. Certainly, their budget over the past few years has been far smaller than McLaren's, Ferrari's or manufacturer teams like Toyota or Honda so the fact that they engineered their way to the top in 2009 was impressive. This team was Jaguar remember, and had been in a succession of big messes. You need some serious organisation to sort that out and when they were in the middle of nowhere they certainly didn't have the budget of the then established teams.
As an aside, remember when Jaguar said they'd signed Newey? I wonder whether Red Bull 'acquired' him in some way.
Are Red Bull a small team now? No. They are more than just a race team and have contacts the length and breadth of motorsport. They are also in the enviable position of being a part of an organisation who is the major sponsor in a way that I don't think Benetton ever grasped. With their Red Bull Technology company they're also in a good position to use their Formula One know-how and transfer it to other activities. Sugar water might just end up doing the marketing for the other things they do as an umbrella organisation.