The next tool/software recommended for the E46 or similar vintage BMW is BMW Scanner 1.4.0., then INPA. If you feel the need to go further you could deal with NCS and related programs, however, most people will not need these.
As for a stand alone tool like the Foxwell/Schwaben a few nice things are this.
1. It is a stand along generic OBDII scan tool that this model will work on other than BMW's, pretty much any 1996 and newer vehicle.
2. It does deal with some BMW Proprietary codes and will interrogate most of the modules in the vehicle.
3. It should be able to do some programming, BUT I cannot say if this works. It should be able to at least reset Service Intervals, Steering Angle Sensors and other items as I recall. The problem is a replacement Steering Angle Sensor needs to be VIN coded and I have not verified the Foxwell/Schwaben tool is really capable of this.
4. The Foxwell/Schwaben tool can have additional manufacturers added for like $60 so you can enhance the value of the tool to cover other model specific like VW, Mercedes, Ford, GM and others. But since this tool is an Asian tool, often the Ford or GM may be more Europe centric than North American market centric.
5. I recall the Foxwell/Schwaben has some minor Bi-directional capability. This is great for a tool in this class but the Bi-directional capability is limited at I recall. Often you can see switch inputs from the drivers seat position and often you can enable some engine controls like solenoids or cooling fans. I added the VW module to the Schwaben tool I have and I do not recall what features were for BMW or VW. I do not have my E46 close by so unfortunately I cannot run out and test it.
6. One problem with the Prosumer tools is they often do not limit the feature menu based on the car year, chassis and options. So for example you may see things like Blind Spot Monitor or an option your car does not have listed in the menus. So you might get excited to play with a module that your car does not actually have. The Professional scan tools do a better, but not always complete job of narrowing the menus down to include only the modules on the vehicle.
Overall I think the Foxwell/Schawaben tooi is worth having. You will get free updates for 12-18 months depending on the tool. I think additional updates are like $60 per year. Additional model support is $60, but you have to pay $60 for updates on each model installed on the tool. The tool covers a full line of BMW/Mini models so if you have newer or other models in your fleet, this tool should be useful for models beyond the E46. Just be aware these tools continue to be updated, so often a missing or non working feature will be added or fixed in newer updates and there are things these tools will never get sorted out as well.