It'll be interesting to see what happens here. Do the right thing - have your software updated so that your emissions are according to spec but likely a negative impact on performance, or don't and continue to spew 40 times the allowable and enjoy the superior performance that comes with it.
you're forgetting the VW buys back all of the cars option- they sold a car with a certain advertised MPG and HP, if they can't find a fix that leaves those numbers reasonably intact (good luck), I think they're either looking at some combination of a voluntary buy back and a slew of lawsuits. I think anything under warranty will have to be bought back, the older ones are more of a question mark
there's also a chance people won't have the choice- in states where emissions testing is standard, you probably won't be able to register/renew a registration on one. In other states, it probably depends on how much the states/epa cares