My suggestion would be to go with the OEM silver kidney grilles. That's what I did when I had my X5...see pics here:
http://www.xoutpost.com/bmw-sav-foru...hire-214s.html
If you don't like the chrome surrounds, you can do something about that. But I think the OEM grilles look best. And I'd stay away from that ebay crap.
If you want to remove the bumper and paint the lower mesh black, it's your call. But I wouldn't do that unless you were going with the all-black look and didn't want any light/contrasting colors. Just my opinion. If you paint the mesh, it will likely chip/crack over time anyway. Good luck.
Oh and by the way, E53is, your M is sweet!