The BMW X1 is due to be released sometimes at the end of 2009, but that doesn't stop BMW for driving around their test mules in the old Munich. The first spy photos I have seen were back in November 07 and the car has come a long since then. I couldn't really tell where BMW is going with this, nor that I can now, but at least we have a better idea.
The X1 will most likely not be a downsized X3, but it will rather be placed somewhere near a 1 Series and a 3 Series touring. From the spy photos, we can spot the possibility of a hatchback version. The chassis is based on the 1 Series platform but it includes the BMW X-Drive four-wheel steering.
Not many information have been released about the interior, but the colleagues at Autocar UK seem to believe that it will have the standard BMW interior, with two large vents in the middle of the dash. We cannot really confirm this rumor at this point, but we will look into it.