Agreed it is ironic the VAG should be one of the first looking to do this as you say Ian, but don't forget they have been the main driver in developing the Diesel engine in the first place, the first to use it in a racing series BTTC and European DTM too. The only reason they shot themselves in the foot in the USA is because they had pushed the emmmissions as far as they could (which causes the vast majority of repairs on Diesel engines) and all they could do was bend rules, the same ones they bend to breaking point over here in Europe, only we don't stand up to them like the USA did. VAG pulled along other luxury cars like BMW and they're suffering the same repair problems too.
The motor trade has always let the market follow its lead such as when catalytic converters were introduced and (at the start) 6 year anti-perforation warranty which turned into anti-corrosion warranty. It can't and won't happen over night but it will happen, and as you rightly point out we all have become to reliant on diesel and were even encouraged to do so back in the day when diesel was kept artificially cheap to make us.
I thoroughly dislike working on Diesel engines but that's just a personal thing, cheaper decent MPG alternatives are out there they say but not till all the oil is gone.
Tony.