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I don't know how BMW leather is these days, but my E36 M3 had leather and it looked like complete shit after 4 years, especially on the side bolster area. It was cracked, faded and generally ratty looking. Mind you, I did care for it with Lexol leather products and had the car detailed every 3 months.
My E46 325ci had black leatherett and looked as good on the day I traded it in as the day I picked it up. Nobody who was ever in my car thought the seats were anything but real leather and the fake stuff is far more durable so you don't need to constantly fret about the leather and if your belt/jacket/pants are wearing the leather down. I actually prefer leatherette to real leather.
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