The BMW touch-up paint sticks are horrible. Google Dr ColorChip, I think it is much easier to use and I've been happy with the results.
Whether you get into a new BMW or not, you're going to have a problem with rock chips. I've never had a car that chipped this bad (then again, I've never had a car on which I noticed these sorts of things so much). I think other manufacturers are having this issue as well, and it has more to do with more environmentally-friendly paint formulations than with any manufacturer-wide defect.