Sorry to to be negative but why is this worthy of a news item?
Volkswagen have had a very similar system in the Golf and Passat for over a year now which is actually Touchscreen too. Not to mention Mercedes C-Class which has 30gb of space for music compared to Audi's 10gb.
Its also about time Audi upgraded the Sat Nav system offered in the A3 and TT which costs nearly 2k, but is almost a decade old!