I used Dex-Cool in a Fiero years ago as that was the recommended thing at the time and didn't have any problems with it. But I've heard nothing but complaints more recently from people who have tried it on other cars. BMWs included. And yes, it's a pain to have to flush out the whole system.
FWIW, the correct, blue, BMW stuff is maybe $15/bottle last time I checked? If I were going to flush the system, I would go with this as the price difference is nothing. From what I understood, Dex-cool (orange) is NOT the same makeup as the blue stuff, but I could be mistaken.
A recommendation though, the regular Prestone, yellow bottle, extended life stuff, you can find it anywhere, is designed for mixed material cooling systems. It's made to be added to any system, any coolant, it's yellow in color and phosphate free. I've used it on my m10 BMWs and the E36 I had a few years ago, and have had no signs of trouble with it. And you don't even have to flush out all the green stuff, although getting rid of most of it would be ideal. I think it is $8 or $10 per bottle.