IMHO just remove the airbag, it's really not that hard.

This looks like the current plan. I picked-up some Goo Gone and a small plastic scraper yesterday. Thanks!

Snapped a picture of my wheel so you can see how the trim looks.

After some wrangling, cursing and frustration on trying to get the airbag removed from the steering wheel I found this which explained everything. I was able to remove the airbag within minutes - the diagram in the link was what I needed to visualize what to do:

BMW Workshop Manuals > X Series E70 X5 3.0d (M57T2) OFFRD > 2 Repair Instructions > 32 Steering And Wheel Alignment > 34 Steering Wheel For Airbag > 1 RA Removing And Installing_replacing Airbag Unit

Left side after removing the coating:
http://i238.photobucket.com/albums/f...ps894obgo7.jpg

Right side after removing the coating:
http://i238.photobucket.com/albums/f...pshze1ngza.jpg

I used a plastic putty knife, Goo Gone and my finger nails to get the coating off - very tedious but well worth it. I may have missed a few small spots but will touch those up today...got in a little bit of a hurry since my wife and I were meeting some friends out for cocktails and I was ready for a drink. :D Thanks to everyone for the DIY and your help.

glad you were able to get this done. I hated the rubber peeling, especially on the steering wheel controls. It was annoying having to stare at it all the time while you drive. You can't ignore it when it's right in front of your face everyday.