Excellent news. Glad to hear about the progress.
Why is everybody assuming that the cars will be slower with this new physics update? Notice that Scawen said that they couldn't make the Scirocco perform as well in LFS as compared to the real world. They found the the tires produces too much grip (I would assume in certain conditions, but maybe not all). However, if they fix that problem, then the rest of the suspension can probably now work better (more like a real car) and thereby allow a better overall level of grip for the car thus producing faster times overall.
Yay! Now I can throw away all my old setups and start again, and that really is a good thing.
EDIT: OK, he said "handle as well" not perform as well. But I would take much the same meaning from that.