David,
When I did the REAR bearing in my E39 (1998 528i), it was actually easy once you know the trick. Same idea as the Front bearing in the E53 X5.
Of course you can use a dremel (or angle grinder) to cut through the inner race.
But one must be careful not to cut into the hub itself.
The other method is to cut 2 opposing grooves on both sides of the race, then use a puller to pull it out.
I wrote the DIY in the link below...
DIY: 1998 528i REAR Bearing the Easy Way! - Bimmerfest - BMW Forums