I strongly urge you to spend at least a few days in Bergen. It is not a "big city" - certainly doesn't feel like a city at all, rather a large town. It's beautiful and there are many interesting things to do there, as well as in day trips from there.

Here's my trip report from this past June. I give the info on the B&B I stayed in which I highly recommend - and doubt you will find too many places that are much less costly. Norway is expensive, that's why I only spent four days, I couldn't afford a whole two week trip! I would say it would be worth your while to include Bergen even if it meant shortening the entire trip by a few days. I agree, Flam was OK for a few hours but there wasn't much there. And the lack of restaurant choices means it will probably be more expensive than Bergen even if you found a hotel that was less.

http://www.fodors.com/community/euro...r-four-day.cfm

We stayed in flam for two nights right on the water
Was lovely base...all to ourselves after visitors left

I haven't been to Flam, but highly recommend Bergen. I was just there and it is an interesting and beautiful city.

Bergen is Norway's "gem of a town"...don't miss. Take local bus to Trolldhaugen for the beautjful setting of Grieg's country home, studio and concert hall. Does this mean you are not considering a few days in the Lofotens? I hope you can manage to take them in. There is just an unforgettable "feel" for the Lofotens. But if you're set on not getting a car, I would have to say save the Lofotens for another visit.