In the US for the F25 X3, M-Sport trim does not include a sport suspension. There is a dynamic handling option, as you noted, that provides more flexibility in adjusting handling and comfort. DHP is a relatively rare option and will limit selection of used X3 vehicles and may add to repair costs long term.
My wife and I have two 2016 X3, neither has DHP. One has 18" run-flat tires and the other 19" run-flat tires. The 18" tires have a slightly softer ride, but there is not much difference. I have no problem with passenger comfort in either of my X3s. Some owners have changed from run-flats to conventional tires and report this improved ride comfort.
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