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I came from a 2011 X5 without DHP and opted for DHP in my X7 so that's the backdrop for my observations.
The net effect of DHP has been for the car to handle like a smaller vehicle. Body leans are minimal, turning is sharp, and the ride is insanely smooth even with the 22" wheels. There is no special setting to disable IAS but you won't need to since the car does all the thinking for you. The only downside to IAS is the $450 charged for alignments.
I haven't driven an X7 without DHP but given how amazing this giant SUV drives, I think DHP definitely lets you feel like you are driving a smaller car while having the space of a 3 row SUV.
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