BMW maintained the one-time purchase option. The subscription was added for people who only wanted to pay intermittently (or who were buying a BMW new, but somehow didn't have the $500 to pay for heated seats upfront).
I would heartily disagree. When I go to buy some software, which I purchase via one-time purchase, I do not care one bit that they also offer a subscription. If the subscription is a ripoff, then those customers are effectively subsidizing my purchase. And if it's a great deal, then maybe I should consider subscribing instead of paying a lump sum. Either way, I'm not hurt by the additional payment option existing.