Interesting update - I picked up my 2008 X5 today from the dealer. I had several pieces of peeling trim replaced, including the console area around the idrive and both sides of the steering wheel.

The results look great, but I'd like to report that it looks like BMW FINALLY figured out that they had a problem. All of the peeling trim pieces that they replaced seem to have a much less "rubbery" feeling - almost like they are not coated with the same coating. It looks and feels different, but just as nice. I'm very hopeful that I won't see any peeling.