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My fiancee and I have an X1 and a f30 335i, and I must say I actually really enjoy the X1 because of the combination of small size and utility. If you don't need something big, an X1 is perfect for you and the dog.
It's better in mileage (I'd imagine it's a little lighter than the X3), a hair quicker, and will save you a couple grand.
The space in the back is ample with the seats folded down, not for huge dining tables or anything but it gets the job done with most things we need to haul (that doesn't require a truck at least).
Unless you're looking for more road presence, you still get the SUV feel inside the X1.
BTW, if you're a stickler for sound, I'd highly recommend getting the Harman/Kardon upgrade. The stock speakers on the X1 leave a lot to be desired.
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