I had the same decision to make, before deciding on the 540i eventually.
The Merc definitely has the better looking interior, and from some angles it also looks better. Performance the 540i has the upper hand, and as you say the Idrive just is better.
What made me deciding on the 540i in the end, was the driving experience. I just felt completely disconnected in the Merc, and build quality also was not on par with the 540i. The BMW felt like a better built car, with absolutely no rattles or squeaks. The Merc's dashboard had constant noises emanating from it.
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