I imagine a lot of customers will avoid getting the "fix" in order to maintain the performance of their cars. There's not much that they can do to force these people to bring their cars back.
Uh. In any place with emissions tests I presume these things will instantly fail without the upgrade, so you won't be able to preserve your registration without it.
FWIW, my county doesn't do emissions tests on diesels.
I can't imagine a test centre knowingly passing a car which has been shown to cheat on tests.