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the only thing you may want to keep in mind is the CPO warranties are for a total of 6 years from the original in-service date (or 100k miles). The '04s would expire anytime from late 2009 to summer of 2010 -- so it might be worth finding an '05 with similar mileage.
Don't have any highway mileage experience in an X5, but our X3 3.0 gets between 22-24 on the highway (and 17-19 in town)... the X5 is probably a bit heavier -- so 21 probably makes sense.
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ZBB
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