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Other than keeping it all original for resale, I think the DSP system is outdated and easily outperformed by current technology. It is kind of a pain in the *** to remove and rewire but it’s worth it 20 times over. The biggest issues are getting power for an aftermarket head unit and running rca/antennae cable to it from the rear. Not rocket science and doable with the wealth of info here. If you’re considering ditching it I highly recommend it!
I just replaced the speakers and the Nokia subs with some Rockfords and the sound is great. Replacing the 2 inch mid range from the front doors were a pita but they really don’t need to be changed. It doesn’t sound better than if you rewired a whole new system with signal processors and powerful amps but the sound output is tremendous. It sounds better than my bang and olufson system in my A4 greatly. The total cost was less than $300 but I did get a great deal on the hertz deici components. Just my $0.02
 

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No argument you will always get the best sound with a proper aftermarket setup. But I can't gelp but get sort of annoyed when people buy old cars like these with the original speakers then complain that the sound is bad. Well of course the sound is going to be crap! Even the "newest" E39's are 17 years old, so the speakers have out lived their use. My car still had its original M-audio speakers when I got it. Front ones were blown, rears weren't far behind. The subs worked, but not by much. It sounded god awful.

Was going to eventually gut it all and go aftermarket. But then a co-workers dad offered to sell me brand new Bavsound Stage 1 kit and new M-subs that never got installed on his wrecked 540i all for $400 which was way too good of a deal to pass up! Took him up on it, and I haven't regretted it since.

If you want to go aftermarket, nothing wrong with that at all. But for people who don't want to go crazy or on some sort of a budget, just buy new high quality speakers. Doesn't have to be some ridiculous expensive stuff like Focals. I mean don't get me wrong Focals are amazing but are stupidly overpriced. Holiday27 did an excellent job of finding something that gave him a big leap in sound quality.

Now of course when my original amp does crap out (which it will), then I will replace it with a proper aftermarket unit. Heck even OEM speakers are supposedly better with an aftermarket amp. I know BMW still sells brand new DSP amps. But there's no way in hell I'm going to pay $1300 for one, then another $100 just to have it "coded" to the car. And thats if they even do that anymore?

Sent from Uranus with Love.
 

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What nfs021 said is totally on point. The only thing I will say is if you aren’t getting the m-audio subs brand new at a great price save your money and buy 2 dual voice coil 10” subs and install them instead. No extra wiring and if you mount it from below it’s less work than what I did. It’ll also sound way better. Keep in mind a used m-audio sub is at best 17 years old.
 

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Just starting my upgrade project. Here's what I'm going with:

Head unit - Alpine ILX-650 with Dennis Cooper's NXG-39 mounting bracket. Looks OEM.
Amps - Alpine KTA450 which mounts to the back of the HU and will drive the front speakers.
Alpine S-series 4 channel to drive the rear speakers.
Speakers - Boston Acoustics 6.53 system. 4.5' mids in the doors and 1" tweeters. 6.5" woofers in rear deck

It comes with it's own passive crossover system which I think sounds better than electronic crossovers from the amps.

Alpine 5.25 in the rear.

Alpine back up camera
PAC steering wheel controls
Sirius XM module
All new speaker wires. The OEM wires won't do the job IMO.

I modified the sub baffles in the rear and will seal with with Dynamat tape and stuffing for the interior.

I've had the BA system in 2 other cars and believe it or not, the 6.5 woofers sound just as good as (1) 10" woofer. We'll see how it sounds when it's done.
 

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I did a upgrade on a past e39 that I owned with stock DSP - Memphis speakers and a mono amp running the Nokia box with stuffing. It sounded pretty darn good.
This is my all I have for a stereo now - maybe the most minimalist one could go.
936842
 

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I just slapped a grom unit in, hands free cell, full steering wheel control, waze or maps for guidance, Siri at the push of a steering wheel button, Apple Music all day, so simple, and not even a crackhead smashes a window for a stock head unit. I like my mods unseen (but that’s just me, a great system is really nice to have).

I know I’d miss the look of utter amazement/confusion on people’s faces as the screen slowly rotates open to reveal A TAPE DECK.
 
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