The real question that you should answer to yourselves is: Is BMW changing, or are the customers (and their habits, preferences etc)?
The once core BMW customers - the flower-prower generation, the yuppies, petrol motorsport addicts etc. are getting older. And they prefer a bit more comfy ride. But they still love the BMW. Should they got to eg. Porsche instead? No. BMW decided to offer them BMW for their needs. Done.
Sure there are still some core BMW purists out there. Even some youngsters do prefer harsh sporty ride, but today they are more into tech then motoring. Hardcore petrol motoring is so 80s.
Not only BMW is getting "softer". So is Porsche, Ferrari etc. Today's cars compared to the old ones all feel rather cyborgish, much less raw.
Also a fact that has to be taken into configuration: by all measures BMW AG is a small automotive company. And it is independent, not being a part of a larger automotive group. Is that good or bad? Depends. Bad for purists since the company can't afford any more to only cater to their needs. It has to go broader to survive. If not independent BMW would probably stay niche much more performance oriented brand. Or not. No company would like to have an unprofitable BMW AG in its portfolio - so I guess even under some big company's umbrella BMW would still have to expand its product line, and share parts.
And more: BMW never has been a niche brand. It was more about sports cars for "masses" - compared to eg. Porsche. And BMW took that title from Alfa Romeo! Yes, once upon a time Alfa Romeo was THE sportiest brand for sedans & coupes "for masses". For others there were Lambos, Porsches, Ferraries, Astons ... and they still are.
So, being in a such position BMW has much more rivals than eg. Ferrari. So, it has to evolve to survive.
It's a fact more and more customers WANT more comfy BMWs. It's a constant battle between "should" and "want". Customers tell BMW they should built more comfortable cars, yet BMW want the brand to stay sporty. so, there is always less comfort delivered than asked by customers! But if rigid & saying NO, BMW would lose quite a lot of their (aging) customers. So the brand has to evolve with it's customers. The newcomers are not as much sporty & performance oriented. Gosh, 3/4 of 1er buyers think the car has a FWD!!!!
Mr. Kiley perspective is rather limited, and very, very US-centered. And sure a member of the old guard.
If there was something wrong with the brand the sales would be sinking.
It's weird everybody is saying BMW is losing it, while sales are going up & up. It doesn't make sense, does it?
Bad products of crappy brand would not sell. BMW vehicles do sell. A lot.
But sure to some BMW is losing its edge. Especially to the aficionados who were able to drive older purer BMWs. But they are a minority today. They simply do not matter as much as they did in 80s or early 90s.
I'm sure BMW would produce sharp, super sporty cars in millions if they could. But they can't. There are simply not enough buyers for such cars @ such a price. But for the contemporary BMW there are a lot of customers. So, BMW HAVE TO adapt.
So, has BMW gone softer? Yes. But there is a good reason for that. Described above.
Customers desire well balanced cars. The masters of all trade. Therefore MB & Lexus are getting sportier, while eg. BMW & Alfa Romeo 6 Porsche are getting more comfortable. It's a force no car company can't fight. The law of consumer preferences. Basic marketing.