My wife recently test drove a 2013 328i and we stopped to look at the X1 while at the dealership. Having driven the X3 for 9 months, I was truly shocked at the interior room. It's probably comparable to the 3-series, but it seemed much smaller. While it seems more intimate than the X3, I wouldn't look at the X1 unless the mileage was significantly higher (I routinely get 27mpg in my X3 on the highway).
Concerning payload, I have dogs myself and all three of them fit comfortably in the back of the X3 with the rear seat up (no Great Danes, mind you, but not Pomeranians either -- about 40-50 lbs each). I have serious doubts about the X1, which seems to have about 5 less inches of cargo depth than the X3 from what I can tell.
The mileage is better (it's smaller/lighter), but it wouldn't serve my purposes.
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