I checked the X5 forums and so far I didn't find much info.
I'd think that 8 quarts of BMW approved long life synthetic 5W-40 or 5W-30 with a good sized canister oil filter and a 2005 model oil monitoring system would have some value.
Other than cost and time, you certainly can't go wrong with a 5K or 7.5K oil change.
An annual oil change seems prudent for low mileage drivers.
BMW had a 2001 TSB for annual oil changes if the vehicle wasn't driven much.
But the 2005 manual now says 2 years.
My thinking was that off road, towing, New York City bumper to bumper traffic might fool the oil monitoring system, or just be too hard on the oil.
But driving in CT would probably be a good mix of town, highway, and longer drives and the monitoring system would be accurate.
I could be wrong.
Supposedly, the manufacturers have put a lot of effort into getting these systems right for each engine and their specifics needs and problems, such as shear or blow by gasses.
Maybe a good approach would be to use UOA and sample at 6K or 7.5K and see if the oil, your driving patterns, and the BMW Oil Life Monitor are compatible?
An oil sample could probably be taken from the middle of the oil sump through the dipstick tube with a hose.
If the UOA says the oil is fine at 7.5K and you ran until the monitoring system notified you that it was time to change, then you could sample again and share that info with other X5 owners and forum members.
Then you'd all have a better what worked.
Here's the owners' manual in .pdf form , [you may have to copy and paste the link]
http://www.bmwmotorsports.org/pdf/BMW X5 Owners Manual - 2005.pdf