Maybe the others knew they were cheating, I can't imagine that it wouldn't leak out some how. I also can't imagine how you wouldn't go buy a hundred VWs and meticulously take them apart and understand them after getting brutalized in the diesel market.
With mid-sized and heavy trucks, there is an entire subculture of guys that mod them for "more power" and such. There is a little industry built on it and nearly a religion surrounding the "better mileage" and "more power." Some of the systems and devices are sophisticated enough that they have integrated on/off switches for passing smog tests and such. If we really really cared about it, that would be illegal, there would be much more stringent emissions testing more frequently.
I'm of the belief that the regulators knew or suspected there was some cheating but it's political to make waves.