A - You do NOT need to bring the car to Audi. They can cut you a key from the VIN as long as you prove ownership. Retail is about $85 for this.
B - There is NO programming required *at all* on a North American (USA/Canada) market B5 to make the car unlock, start and run.
C - There is a procedure to "sync" or "learn" the keyless entry remote, but that does NOT (and actually *cannot*) require any tools at all, and is super easy to do yourself.
D - These are not "laser cut". They are cut by a metal tool.

The information you need to find out in order to make the decision that is the least cost:
- Get a price from Audi dealer for 1 fip key "head only*, cut to your VIN. No remote. No programming.
- Get a price from your locksmith to come to your house and decode and cut 1 flip key, *head only*. No remote. No programming. If he harps about programming, tell him you "literally just want a key that will unlock the door and let me turn the steering wheel."
- Get a price from your locksmith to copy a provided Audi key onto another key of your choice (flip key "head only", standard flat key, a flip key blank that you provide, etc). Just a price for a physical copy job. No touchy the car. No remote. No programming.

This would be my plan:
- The price for the locksmith to come to your car and decode the lock and make a key on-site will likely be over $100. So the cheapest route to start with will be to obtain the $85 key from the dealer. Finish that key with an ebay remote. Done.
- For your second key, the cheapest price will probably be a copy made by your locksmith. At my locksmith it is $10-$15 for a simple all-metal copy. Remember, the 2nd key doesn't have to be a flip/remote key. Can just be a regular old key.
- You need 2 keys in order to program the keyless entry remote, and it's just good sense to have 2 anyway.

When asking about Audi key copying for non-immobilizer cars, my trick is to ask about copying a key for "1998 VW Jetta". This is basically the oldest, cheapest VW/Audi that uses sidewinder keys and doesn't have an immobilzer either. Sometimes you just say the work "Audi" and the price goes up. lol