As a BMW "fanatic" I'm a bit concerned by AUDI's new path - it is heading directly towards BMW.
Audi cars are very good in many aspects, but what they lack is the handling crisp due to platform they are using (weight distribution!). The new platform sounds very promising - eliminating Audi's weakest point: crispy & responsive handling / steering. I'm eager to see the new platform paired with 40:60 quattro, DCT, & RS engine & setting.

Also eager to see if the comfort (suspension) will be improved with a new platform - especially with goodies like air suspension or magnetic ride dumper control.
Audi's image in Europe & Asia is gaining credibility with the speed of light. Audi is having a momentum. The only weakest point are USA where Audi's image lags behind BMW signifacntly.
Mind that Audi has one significant advantage over BMW: utility - since Audi cars are bigger & offering more (laguage) space. BMW will always put excelent driving dynamics ahead of practical asspects of a car: that making BMW vehicles more "mobile communication statements" than "utilitarian vehicles", and therefore more niche vehicles than all-round mainstream-ish Audis.
In the future the main differentiation between Audi & BMW will be: DESIGN & BRAND NAME IMAGE (mainly based on old fame).
Mind that Audi is attacking BMW's driving dynamics, while BMW are taking on Audi's quattro. New gen. of xDrive (now coming in SAC X6 - most thought it would come in E70 X5 since it was tested in E70 prototypes - but that were only early tests - debut will be in X6). of MUCH better than current xDrive (which is deffinitely not bad): targeting new rear-biased quattro right in the heart. Also BMW are improving the quality issues (fit & finish, up-scale materials etc), and refining the repelling design features.
So, the only main differation will be the brand image (based on old fame) & the design: BMW with teasing ultra dynamic & crisp design full of temperamant emotions, while Audi design will be less "to-your-face" but more refined & possesing "classic beauty". But both being very modern & elegant.
And with these qualities (almost BMW-like driving dynamics, sporty spirit, good ride comfort, excelent fit & finish, being more practical & utilitarian, offering hi-tech features, cool & calmed design) I'm affraid Audi vehicles will be more appealing ...
But still: BMW brand image is very powerful, and BMW will not rest ... the very important niche vehicles are coming (X6 & V5 - and also repositioned core models: like more coupeish next gen 5er) which will either make BMW brand stronger, or hurt it. Kind a repositoning of model line. But BMW are confident. But so are Audi ...
But as history shows us: its much easier to come to the top position than retaining it (e.g. MB case!). So, BMW: be affraid!
PS: this is a
pure internal rumour, but ideas are pouring in BMW departments: there is
an idea to offer some M models with off-switchable xDrive: enabling / disabling xDrive with a push off button.
Mind that BMW are considering to reposition the M: making it more mainstream in the future to gain more sales & to fight the rising competition. The line-up expansion with significant part sharing will happen - this is for sure. And the AWD idea is a part of making M more appealing to broarder customer base. But it is only an idea. But in either case M CSL / CS line will be the "true M": brutal power, lightweight, raw racer, RWD only - a true car for true aficionados: moving BMW again where it belongs: on top.