The buzz currently is (in the other forums) that the $5000 or whatever amount of money will only be given upon fixing the car to be compliant. Much of the TDI Forum community very much doubt that VAG will giving us $5000 and allowing us to keep our cars the way they are.
However, for me a buyback would be considered, as others have mentioned, if the deal is good enough. With the options my car has, and the mileage (just 50k this week), I would possibly make a deal for a 15 or 16 Q5 TDI and happily rock that as a commuter and utility vehicle if the monthly payments were similar. The likely hood of that happening though, I think I'd get struck by lightning first. Additionally, all of my mods and money invested will drive away with the A3. Hmm...
If I were to be simply given $5000 with no stipulations of repairs being mandatory... I may consider having the first 6-speed swapped A3 in probably all of North America. Or put that down on what I owe, we'll see. Though, I doubt that will happen either.
If the second option I mentioned is not going to happen from AoA, then I'd probably be more inclined to pursue option 1, of course with parting out as much of the aftermarket parts as possible, and also less likely.
Sigh....