BMW does have a goodwill warranty in place for the instrument cluster that covers all X5s, so they will do it for out-of warranty cars. However, they are doing that one based upon 'safety', the argument being that because the pixel display is failed on the cluster, the 'fasten seat belt' warning is illegible, and that is a safety issue.

So, as far as your problem goes, you can point out to the dealer and to BMWNA that a goodwill warranty program does exist, but just don't bring up the specifics. Might not get you any where, but will help your argument.

Your failure sounds very odd, it is not normal. Push hard on this one and see what you can get out of them.