For those of us not lucky enough to own a CSi, fitting a LSD is a definite improvement over stock. The only reason BMW fit an open diff is cost. There's a reason why all M-cars, plus a few select older non-M BMWs (850 CSi, E36 328i Sport, E34 535i Sport, etc) are fitted with an LSD from the factory.
Some will say that ASC+T does the job of an LSD, but quite frankly it can only be considered to be doing a very poor job of it. I always switch ASC off when I drive my 840, as it's nothing more than a nuisance. I'm then faced with the classic "one wheel drive" that all powerful open-diff cars suffer on anything other than perfect surfaces. I'm aware of the "secret" mode of the ASC+T, but it's not really that helpful in my experience.
My E36 3-series daily driver is fitted with an LSD (aftermarket upgrade by myself to improve traction on the limit), and it's been a godsend in the snow. At my work just about every BMW was getting stuck in the car park, thanks to RWD and the one-wheel drive effect of an open diff. Mine didn't get stuck or need pushed once. My 840 hasn't turned a wheel since we've had snow, as I know it'll be hopeless with the wide tyres and open diff.
Don't think for a second that what BMW sends out the factory gate can't be improved upon. I'm an advocate for mostly-original cars, with no silly aftermarket wheels and other bling mods. But as stated by other posters, there are always compromises (especially when it comes to cost, even on a £64,000+ car) meaning there are definite improvements to be had.