Thanks for being the guinea pig on this. Sad to hear that the Euro Bike rack won't work, but if anyone has tried pricing it the retail is $820 USD, anyway, so perhaps they did us a favor...
I had a class 1 hitch on my last car and over time had issues with the mounting points weakening and causing the hitch to sag. I used my hitch exclusively for road and time trial bikes. Together, my bikes weight 33 lbs. and with my rack being another 30 lbs, the total weight on the hitch was only something like 63-65lbs + aerodynamic drag. Do you foresee anything like this happening to the hitch you put on your X1? Does it feel very solid? I see they rate the tongue weight as 200lbs on the 128i with this hitch, do you think that holds true for the X1, as well?
Also, you mentioned something not being flush, but I found that hard to follow. Did you mean that you could not mount the hitch behind the bumper support due to the mounting holes not lining up exactly right, so you chose to mount it front of the support instead?
Did you have to cut anything? Drill any holes?
PS: Throw up another picture after everything is back assembled so we can see how it looks.