I just want to report that I had an excellent experience having a new key made for my S-Type. A local locksmith has gotten all the equipment necessary to make high-security keys like we use for our Jaguars.

He was able to make a plain ordinary car-key for me with no fob. He was able to clone the security code from an existing key so no reprogramming of the other keys was necessary. Now I have a much smaller key, than the original with its fob, that I can place on a regular key ring with other keys and not fill up my entire pants pocket.

He charged me $100.00.

So if you're tired of the space that the fob takes and would like to have a much smaller key and use the lock on the door rather than a remote un-lock, well equipped locksmiths can do the job and for a much lower price than a dealer would charge.
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Jaguar: Grace, Pace, and Space - Sir William Lyons
'08 Jaguar S-Type 4.2 "Satin Edition"