They certainly don't hook it up to a computer and type in 0s & 1s!
They do now.
Stealers no longer get to see key codes.
The process is designed to prevent fraud.
Working key put in to ignition
Car plugged in to diagnostic machine.
Diagnostic machine contacts VW central database
Inserted key is checked with database
Key is removed
New key is put in to ignition
Diagnostic machine tells ecu it can use that key
All other keys are deleted from the memory except the ones used in this process.
In fact it is good practice to test your spare key after a service - if it doesn't work someone may have made a key to operate your car.