The light and rain sensor are independent in terms of function. So yes, if it rains but is light outside (sometimes on cloudy days), it is up to you to turn on the headlights manually. However, if the switch is in the Auto position and you hit the foglight switch, the low beams will come on.
The switches and stalks work the same way as the E46. No complaints here. I'm starting to wonder if I'm one of very few people who understand how/why the Germans engineered stuff a certain way. Maybe my logic just is in sync with theirs'