I have a slightly different perspective on the RS5's S-Tronic transmission, coming from an E46 M3 with an SMG (sequential manual gearbox).
Prior to the M3, I drove cars with conventional manual transmissions. With SMG, you have a transmission that is mechanically identical to the conventional manual but with a computer-controlled, hydraulically-activated clutch in place of the clutch pedal. Consequently, driving an SMG-equipped M3 felt very similar to driving a conventional manual in how the transmission and the engine interacted. With SMG, there was an automatic mode but it was neither intelligent or smooth, so I rarely used it. This means I did all of the upshifting and most of the downshifting myself.
Audi's S-Tronic is similar to SMG in that when you're in manual mode, it will never automatically upshift and will downshift only as necessary to prevent stalling. But S-Tronic's automatic mode is both smooth and responsive, so unlike SMG you don't have to drive it in manual mode to enjoy it. Also, because you have a relative smooth power band and seven gear ratios to work with, the difference after a shift is less pronounced. Often you can't even tell what gear you're in without looking at the dash display. The main benefits of S-Tronic's manual mode are if you want to keep the revs high in the RPM band (for performance) or low in the RPM band (for economy).
I'm also finding that in daily driving, the S-Tronic upshifts relatively leisurely, even in manual mode. To get it to shift quickly, you either have to keep the car high in the RPM band or be heavy on the throttle. This makes sense, since it's trying to balance smoothness and responsiveness, but something to keep in mind if you're concerned about perceived shift speed. I say "perceived" because if you're using any automated manual transmission, it's easy to believe that it's slower than doing it yourself because you're waiting for the car to work the clutch. If you're driving a conventional manual, you're too busy doing the work yourself to notice that it's actually taking longer to effect the shift.
In the area of automated manuals, the market has spoken clearly. SMG failed because the hardcore folks want a clutch pedal and everyone else wants something that's as smooth as an automatic. BMW has abandoned SMG for DCT in its current models, though they do a better job than Audi of offering conventional manuals across their model line (interestingly, in large part due to demand from the U.S. market).
While the RS5 S-Tronic does an excellent job of balancing responsiveness and smoothness, I'm finding that the benefits of shifting myself vs. letting S-Tronic do it are marginal, esp. in daily driving.
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