It's not wrong but it's not telling the whole truth either. More rigorous metrics like YPLL would be better. A 20yo that drops dead is different from an elderly person that dies of lung issues a few years before cancer would have got them and more meaningful metrics attempt to capture this. "Deaths" is just a number and it doesn't tell you much. Age adjusted metrics don't make for bolt headlines or effective emotional appeals so it's understandable why nobody uses them.
In places where diesel isn't placed on a pedestal to suppress gasoline usage, air quality is far better than it was 40 years ago.
An MIT study claims over 1,200 premature deaths in Europe due to the fraud. [2][3]
[1] https://www.nytimes.com/2015/09/29/upshot/how-many-deaths-di...
[2] https://www.nytimes.com/2017/03/06/science/volkswagen-emissi...
[3] https://news.mit.edu/2017/volkswagen-emissions-premature-dea...
So VW traded Y number of deaths for extra marketshare and profit.