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The best difference to make you pay up is the seats. The seats in the 5er's and up are superior due to the multi-contour adjustability. That being said, I don't think you feel the difference of a 5 versus a 7-series in the same way you would feel about an E versus S-Class. Materials is the other big difference although in say an X5 versus X7 it's mostly identical. Most of the tech differences these days are mainly suspension related, and of course the more money, the bigger the engines.
The difference in a 5 versus 3 I would argue is much bigger than a 5 versus 7.
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