Business and regulatory needs prevail.
Auto trans can get better mileage and provide better system control for emissions and so on than a manual trans car can.
Add in the take rate of manual trans vs auto, and the writing is on the wall.
It's not VW. It's the way of the world. Remember when computers meant everyone had to go buy the pieces and bolt them together and repair them occasionally? Now a computer is a throwaway, and in more and more cases is a sealed device (like what BMW wants to do with their engine compartments). You can choose to be mad at it, or you can choose to embrace it for what it is and what it brings. (And there's no question the auto trans does bring positives to the picture.)
I'm sure there are some people who long for the days of milking their own cows and churning their own butter, too. The world moves on.