Since BMW is supplying engines and misc. bits to the Range Rover. It would be kinda like shooting themselves in the foot to produce an X7. I also think that there is a no compete clause written into the Range Rover deal. I do understand that upon completion of the current agreement with Range Rover (Ford), that BMW will release a vehicle that directly competes with the Range Rover and other Ultra Luxury SUV's.
"It's not because I'm an aggressive driver, it's because I'm an idiot" actual quote from my wife.