I suppose that would be OK if you're just pulling 1,000lbs or so. But absolutely no way I'd pull the rated 5,000 with it. It just attaches to the bumper support bracket area and that's all, and that part of the chassis was never designed to take a 3,000 lb pull, let alone 5,000. The factory hitch uses that area only to locate the hitch, the main support is how the hitch slots into the frame of the truck and uses pretty serious hardware to bolt it to the frame. Unless I'm missing something and there's another part of the hitch not pictured since the ad says drilling is required, which isn't needed with the factory hitch.

I've probably towed 20,000 miles with my X5 (I'd guess I've towed 100K miles over my lifetime) and knowing what kinds of loads are put on a hitch there's no way I'd use anything but the factory hitch on my X5.

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'04 E53, 4.4 Sport
'97 E39 528i
'86 911 Carrera, track car
'96 BMW R1100R