Earlier quoted context omitted.
V1 is the speed at which you can still stop the plane before the end of the runway. (It is computed for each takeoff based on runway length, aircraft mass, takeoff engine power setting, flaps, wind, runway condition, etc.) When the plane reaches V1, pilots take the hand off the throttle: they're committed to takeoff, even if an engine fails. It is better to take off and fix the problem or land again, than to smash in…
Isn't there any margin? Does it calculate stopping before end of runway or before causing damage? Surely uncertainty about the situation contributes to defaulting to committing, but what if it's a passenger plane and at V1 pilots know they've lost power? Wouldn't veering into highway at 30 mph be weighted against certain, big loss of life? Edit: I now see that this has been partially answered by uncle comment
Between V1, Rotate and V2, there’s like a 2-3kts difference (between each of them).
I am not familiar what the procedure is if you have dual-engine failure at or above V1.