Audi used a plastic dipstick which could break. It might well be that Audi A2 pioneered the electronic oil level meter to avoid such problems? Why not use a good old steel dipstick?
As long as the electronics work, the electronic level gauge is OK. The problems start when things go wrong. Electronics and software is certainly one of those things that can go wrong. As a programmer I know.
On the dipstick you could diagnose a blown head gasket by miscoloured oil. The electronic level meter only indicates the level of fluid in the sump. It does not care if is dark black oil or water.
Simplicity is the mother of excellence, and hence I would rather have the old dipstick than just the electronic level meter
Harald