Re: BIOS update ?
From the sound of it, it's just a BIOS change to switch this feature off at boot time - just like you can switch some other CPU features off through the BIOS. A microcode update which got the feature working properly would be better, of course, but sounds as if Intel can't or won't fix it this way. My guess is that for a feature this performance-critical, the implementation (and hence the flaw) is right in the silicon, too low for microcode to patch.
There was a similar "workaround" for the original FDIV bug as I recall: a little DOS utility which switched the floating point unit of early Pentiums off. In those days, "everyone" was still booting through DOS, and there were enough 486SXs out there that most software could never depend on having floating point hardware, so that was almost workable - except, having coughed up $$$$ for a high-end chip, you were then left with lousy performance on anything maths-heavy!