Undeniable sense of general disappointment about this vehicle, but I think it reflects the maturity of the X5, and BMW fast becoming a global mass producer, no longer a niche German player.
The new X5 disappoints because it's bland, and no longer typically German premium.
The X5 is now an American market product. The European SUV/offroader market has moved down to X3/X1 level, with products like the Opel Mokka and even BMW's own MINI Countryman setting the tone.
The America-aimed X5 is under attack from cheaper products like the Ford Explorer and Jeep Grand Cherokee. SUVs are now bought more for interior space, high-driving position, and perceived safety for mothers and children occupants, than for off-roading ability. In America they are the descendants of the station wagons of the 70s and people carriers like the Chrysler Voyager of the 80s.
So BMW has shifted the focus of the 3rd Gen X5 to more space, 7-seat option, fuel economy akin to mid-size sedans, and a 2WD option to acknowledge that most of these vehicles never go off the highway.
As a result of the re-focusing, to bring down the entry price, give it more interior space, family sedan-like fuel economy, explicitly acknowledge that cars like these are increasingly people carriers rather than soft-roaders, by offering a 2WD option, enthusiasts like us baulk at the result. The effect is akin to the American Passat replacing the more expensive, European Passat.
It will not be liked by us and many others will say it's a backward step, but it will help BMW to maintain and increase the around 100k annual sales, by fending off the threat of the Explorer, Grand Cherokee and the like, while allowing BMW to move the next X6, possible range-topping X7 into a more exclusive niche, like they will do with the X4 to the mass-market X3.
BMW is planning for the long term. Products like the new R/R Sport may initially catch the eye of enthusiasts, but by providing lower entry prices, more room, more safety and convenience features, and near 2WD sedan like fuel economy levels, real potential buyers, unlike bewailing enthusiasts, will be won over.