I have a 28i RWD and LOVE it. I have two 70 lb dogs and need the space in the back for them. I used to have a Saturn Vue and that was too big, traded that in for a VW Tiguan and that was pretty good size wise and the x1 is just a tad bit smaller than the Tiguan.
So far i haven't had any problems (other than fueling - can't get it to take more than 3/4 tank whether I self fuel or auto fuel - I think there is a thread about that on here). The dogs fit fine and have an easier time getting in the rear than they did the Vue or Tiguan (they are both 8 1/2 years old and I would need to lift up their rears to get into the Vue and Tiguan; with the x1 they just jump in).
The car is very maneuverable and easy to park in tight spaces. Also has plenty of power and have had no problems with short freeway onramps here in So Cal (getting up to 70 mph highway speeds quickly). Braking is excellent. I also appreciate the 'little things' like folding side mirrors that allow more space in my narrow two car garage and the tech features I got via the Tech package - for me it was worth the extra price, although I didn't need everything in the package (still can't get the auto garage door opener to work).
So far so good..... Enjoy the decision making process!