You guys should have a look at the Strategy ONE investor presentation. The primary goal is simply to sustain and increase profitability (like pretty much any corporation which has a realistic long-term vision...). They're doing so by expanding and clearly defining their portfolio. Although my "feels" tell me this sucks, because you end up with diluted plasticy FWD 1-series sedans, my brain is telling me that if they want to achieve the goals they have set for the company, they're doing exactly what they should be doing.
Also look at how they view their own products. They look at regular BMWs as more luxurious premium oriented cars and see only M Performance and M models as high performance "fun" vehicles.
None of this is new.
I'd be quite the happy camper if I were a shareholder. As a customer this all makes me less happy, but if it means that diluting the brand in order to sustain the ability to release enthusiast and niche cars I can accept it. I fear the alternatives are worse and would end up with BMW no longer being independent or losing the ability to cater to their enthusiast base alltogether.
FWIW, I'm not a shareholder or an investor of any kind, but I just think they're doing what they have to do.