There was no way that I was willing to live with that, but I love the coilovers, so a solution was needed. I was reliably informed that this could not be coded out and I'm not aware of any successful attempts at eliminating this warning via VCDS or otherwise. KW have a solution though - their electronic damping cancellation kit specifically designed for the S4/S5, part number 68510144.
At £270 it's not cheap but their equipment is very well made and the kit as a whole is well thought out. You receive four modules, each of which are pretty hefty for their size, encased in what appears to be black anodised aluminum. Each module has a male 2-pin OEM Audi plug which provides a solid water-tight connection to the existing female plug on each corner of the car.
