It's going to get worse, but not for the reason you state. Changing car performance (acceleration profile, etc.) for the worse is a necessary outcome of fixing this issue. That's why people will sue.
It seems much more likely that there will be parts replacement involved, and we may soon discover that the entire engine must be swapped out. This is unlikely to be feasible for cost, but bricking cars to intolerable driving conditions is also not enough. It's going to be really interesting to see how this develops. Done properly, this would probably be the end of VW. So I'm sure we'll see some half-assed solution that doesn't work for the consumer, but lets the company survive for a few more years until they finally collapse from consumers taking their future business elsewhere.