Well the thing is though, the twin turbo 1 series is the top of the line model in the BMW...
you can get a base model 1 series for 31K... Dodge could easily make something that competes with the Toyota/Subaru (rumored to start between 23-25k) and the 1 series and I think they could reasonably do it for around 23-25k as well... especially considering the full size Charger starts at 25k.
And it doesn't have to be "Luxury", it just has to have perceived value (overall package: design, performance, mpg, interior)... And with the way dodge has stepped up their interiors lately, at a 25k price range I'm sure they could put something together that looks pretty damn good.