Indeed they do need to make space for the coolers. I posted a year or so ago that the need for those intakes was probably the reason for the delay in getting the turbo six into the X5 (having had some overheating problems with the original 3 series installation).

But unfortunately the practical need doesn't make their placement look any better to the eye. As an aside, "fog" lights are a virtual necessity for autos today as a feature, but I wonder, from a practical perspective, how many people would miss them if they were eliminated. I can't remember the last time I ever had a use for my fog lights... perhaps if one lived in a coastal area or other area with frequent fog.