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BMW and other companies are selling "stories" to the consumers. "Imagine the adventures you'll be able to experience in your powerful SUV." It's trendy to do outdoor activities and driving an SUV gives us chance to at least imagine the possibilities of doing them. I admit that we've never gotten even close to doing any off roading in my wife's M40i X3, but I'm sure I imagined myself doing so when I was deciding to buy it.
Short answer, no most of us don't need SUVs let alone full M versions, but it's exciting to imagine the possibilities.
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