What CAN be done and what OUGHT to be done are sometimes two very different things. I have towed a camper trailer with a CJ-7 jeep. It has plenty of power and no wheelbase. NOT a good combo.
The original VW bugs have been used in Europe to tow camping trailers; usually the Eriba Puck which is one of the smallest and lightest upright campers ever produced.
Eriba Puck on www.thesamba.com
Here's a link to another interesting European caravan site:
I don't know of many upright trailers here in the U.S. that can honestly claim to be less than 1,000 lbs dry.