They have worked out very well for me.
My mk5 GTi was due it's 60k miles big service so I bought the fixed service plan for £20 more than the cost of the full longlife service. So I had the major service done (I did have to move from longlife to fixed interval but they use the longlife oil regardless so no issue there) - it also includes the MOT which was done and passed yesterday (there was no "it's needs new this and that sir). So the next minor service is now already paid for and I get a VW stamp (for what it's worth) to maintain a FVWSH.
My local VW will also try and price match other local specialists so my car has been there for all it's work (cambelt, water pump etc) as it's worked out cost effective. I will continue to look at the VW costs and if they make financial sense ill use them but only on that basis. As soon as they stop being fair value I'll use the specialists.
Hope that helps.