It doesn’t actually look that bad in person, IMO, especially in a dark color so the fake grill doesn’t stand out so much.
BMW has a bit of a dilemma in their hands since the prominent grill is such a cornerstone of their design language. But they’re most trying to market to current ICE owners for whom grills are familiar and comfortable, so it’s probably not a problem. And the IX is selling very well, with long times for allocations at most dealerships from what I’ve heard.