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Well my first thoughts were to go Alpine HU with the KCA420i iPod adapter to connect the lot up. Much more functionality through the HU itself, but browsing seems to be pretty slow according to reports.
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It's not particularly slow - and indeed is a good deal faster than the Dension.
I have used the Dension kit but changed to the Alpine after about four months. The difference is just stunning. I have a lot of time for the Dension stuff, but given the way Dension run their web presence I just don't think they have got it together enough to offer the support necessary. As an example, try finding the older config files on their website - unless they have changed it recently there was no way of finding them.
I now use the KC420i unit with an Alpine head unit and have to say the difference is huge. The Alpine sounds clearer, the iPod plays flawlessly and since the Alpine unit has the track info on display the iPod sits cosily out of sight in the glove box. All in all it is a much better system and is far more robust than the Dension kit.
If you don't mind losing the Audi head unit then this is definitely the best way forward, IMO.