People want to sit high. People want a car that looks sporty and offroady, but don't want an offroader. People might be stupid but BMW would be stupid to ignore all the pretty cash they can make from them. It's working out well for them.
They just keep adding and adding and adding to a bloated lineup. Remember when you saw a BMW on the street and you were like "whoa look at that!" those days are long dead. Seems everyone now can afford "The Ultimate Driving Machine." I just don't see the necessity in it, but then again I'm one of the few people around that aren't trying to hopelessly emulate celebrity lifestyles like many people are.
End point. I think it's a dumb car that seems to serve no real purpose given that the X3 is the mid size and the X5 is the fully size.