I think there's a lot of misunderstanding in this thread, either that or I've had it understood wrong all along since I own my car:
The Drive option in Individual profile customization has to do with the engine (well throttle response) and it's is a different and independent thing than the DSG being in D or S which merely affects the shift up/down points. You can set the engine ("Drive") to Sport mode, to have the best response possible regardless of what you choose to do with your DSG, that can stay in D, S, or Manual. Also, there is no DSG setting through profile customization, again because DSG is an independent setting which can be in D,S or manual regardless of the driving profile you choose.
There is one catch though which I think is what makes people confuse engine and gearbox modes in this case: Every time you choose either the Sport profile OR switch to Individual that has Drive set to Sport, the car will assume for you that since you have your engine ("Drive") in Sport you also want the gearbox to switch to S mode and so it switches to S. However you can flick the DSG back to D or Manual and it won't affect the engine/throttle response at all, it will remain in Sport mode.
Back to the OP's question: there isn't an issue in reality. What you're seeing as D1,D2 on the dash merely means the DSG is in D mode, not the engine. It is true that on turn off/on the DSG (not the engine) switches to D regardless of your last setting. And for the reason I wrote above (car assuming you want DSG S when selecting Sport or Individual with Sport Drive) it switches to S when you reselect Individual but the Engine always remains at Sport so it's not to be confused with what mode the DSG is in.
Tip: It's perfectly possible to switch to the Sport profile for maximum response and flick the DSG to D for non-silly over-revving.
All that been said, I drive in DSG Manual 99% of the time.
