I, too, beg to differ on the efficicacy of the free-flow intake (ferget the software unless you do a bunch of mods, i.e. free-flow exhaust, bigger throttle body).
I'd also add that given whut it is (the X3), it's pretty agile. I don't have the Sports Pkg, but I don't seem to have much trouble giving 'dancing lessons' to a lot of folks in supposedly 'sporty' cars in the hills around here.
I have had Autothority free-flow intakes on two of my previous BMW's (`87 325is, `96 328is) and in both cases, it provided much crisper throttle response and a very noticeable improvement in HP & torque. It wasn't huge, but it was a noticeable seat-of-the-pants improvement with a little better MPG to boot, and definately made the car more fun to drive. Oh, yeah, the induction 'honk' was lovely, too, like a 300# chainsaw yodeling
Bear in mind that these were just big K&N conical filters on a ~ 12" tube that mated with the airflow sensor (no cold air box/heatsielding) that breathed from behind the headlights that cost about $180-200 at the time.
The Dinan intake unit for the X3 has an enlarged airbox (heat shield) with a cold air pick-up from the left brake duct that should make for cool air & pretty free breathing. I'm going to use some of my Xmas $$ to put one on, I'll let you know, but I'm at 7000' in Santa Fe, and I'll take all the improved airflow I can get.
Best regards, M2