Just wanted to report back now that the clutch is broken in.... (~400 miles on it)
Overall, the clutch is fantastic. Last weekend I did a brake/clutch fluid flush. After bleeding the clutch, the engagement is considerably more linear which actually makes the pedal "feel" lighter. (the old fluid was original and very DIRTY)
I'm still using an aftermarket clutch stop which causes the clutch to engage after about an inch of upward travel. From the beginning, I was planning on putting the stock clutch stop back in but I'm pretty satisfied with how it feels now, so I'm going to leave it.
I'd like to note that the dealer has billed BMW twice for a brake flush over the warrantied service life of my car. It was last done about 9 months ago before I was out of warranty. I can tell the difference between 9 month old and 49 month old brake fluid, mine was clearly the later....
It's such a shame how some dealers/mechanics screw BMW.