Maybe "suffered" is not the correct term, but "inconvenienced" and "misled" are certainly accurate, and we deserve compensation for that. If my best option is a buyback, I have to purchase another vehicle. Where I live, sales and excise taxes on a $27K vehicle run around $2K, costs I've already absorbed once, and will have to again, due to no fault of my own. Starting a new loan means I'm paying mostly interest for the first year or so, which means less equity in my replacement car. There's lots of "costs" involved, not just hurt feelings/suffering.
Since the scandal news broke, I've been seriously contemplating getting a different vehicle. For 7 months, I've been unable to trade or sell my TDI without a significant loss. Last week, I found the perfect (used) vehicle for my current needs, but couldn't make a move on it, and it sold yesterday. So I'll add another word that VW's compensation will help with: "frustration".
Finally, if the $1 Billion figure is accurate, not many of us will be getting $5000. More likely quite a bit less than that.