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M Sport will probably just come down to your preference on how it looks.
Re: leather - I've had BMW's with both. Never complained about the standard leather, it held up well, but also no one ever comments on it. The upgraded leather on the other hand, everyone that gets in my X7 comments on how soft/smooth it is. So I think it's just up to you if you want to spend the extra to have one more wow factor, or have something that will do the job fine but be nothing special.
I almost bought an X5 as well, but my wife convinced me to go for the X7 for the extra space. I've had it for a month and I love it. Zero buyer's remorse over not getting the X5.
Good luck with the options list - some tough decisions!
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