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Hi Matt,
While I only have two kids, I think I can chime in here. After my wife delivered our second child the X5 was my gift to her. It also didn't hurt to read that it's BMW's safest vehicle. Trust me, it's a darn tank that drives like a 540i!
Since my daughter is almost five, we routinely have her friends over to play, hence my experience with three little ones in the back. Depending upon the size of your car seats it can be done. I wouldn't say that there is a TON of room, but that's why the X5 drives so much like a car and not an SUV.
As for long road trips, I agree with your plan to keep the larger Yukon XL (sharp looking SUV, by the way). I think the extra room would make for cooler heads as the kids get fatigued and tired of sitting. In my ugly Expedition, my wife and I take along a 13" Panasonic TV/VCR combo (it's AC/DC obviously), mount it on the center console and fire up Toy Story or whatever the kids want. It definitely helps pass the time.
Again, as far as safety goes you can't beat the X5. I say go for it!
Hope this helps,
DWP
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