i also have a new to me 2005 X5 3.0d it was serviced by BM only days after i got it and the service counter reset, i have since done 9000 km and it has dropped only one green bar, i personally dont believe the service interval thing and will be having mine serviced every 10K, at my own expense ( even though i have extended warranty for a further year)
i just wont have the service indicator reset
no oil can offer protection to a motor for the length of time BMW reckons it can, i have no idea what they are thinking, my old XJ jeep still goes strong after 390,000 km, i have changed its oil and filter EVERY 10k without fail

Ewen