Bearings generally get progressively louder over a relatively short period of time. From what you have said they only looked at the top end, hence they wouldn't have discovered an issue with the bottom end. However, I would expect an experienced garage to have identified bottom end failure, as there are some simple tests you can normally do with the engine unloaded from what I remember.
Rattling could be just about anything however.. you really need to get it properly diagnosed. (it could be a loose pulley for example... or an screwed oil pump).
Lastly, when you say a sudden drop in power... did you get the check engine light at all? Did it feel 'weak' or like the engine power had halved suddenly?
As mentioned, noisy lifters are in themselves not something to worry about.
Not sure on Audi's... does it have a variable valve timing system in place? These are known to cause nasty noises on other engines (Nissan SR20DET for example).