I love it!!! It's one of my favorite names... and I pronounce
Caroline sometimes the same as
Carolyn, and sometimes CAR-o-line or KERR-o-line... But I prefer
Carolyn, and I don't consider it dated. I think it sounds very young, actually. I don't know anyone with this name, but that's probably because I live in Croatia :)
Karolyn is OK, but I still prefer
Carolyn