Yesterday I removed the alternator. I thought I would have to
disconnect coolant upper hose from the radiator but after I took out electrical fan there was enough space to work in there. So after removing the belt there was not much to it. Just tipped it upwards and pulled it straight forward. it is very heavy and you have to support it somehow before you get wires disconnected from, it almost broke my back.
I am getting a new one from the dealer so I will just put it in and see if voltage is constant 14+ volts. So now I know for sure 2005 4.4 x5's alternator is not watercooled and there is no need to remove radiator hoses and refill the cooling system. So all those Alternator DIYs floating out there are for older pre-2004 x5s and on those it's a real pita job. I just had to be extra carefull not to tear any radiator hoses.