You should submit a report to NHTSA. Given the nature of the failure and the potential for causing a fatality, they should take it seriously. IF enough similar reports roll in, BMW may have to issue a recall. In that case, you can actually recover some of your expense if you can prove how much you paid to get it fixed.
The rear wheel hub on many 1200 boxer shaft drive bikes had a factory defect in the lugs where the brake rotor bolts threaded into the hub. The lugs would snap off, allowing the rear brake rotor to flop around. Mine did this on my 2005 1200 GS and it destroyed my rear brake and final drive in the process. My bike was WAY out of warranty, both in years and mileage!! I got the usual, "Wow, we've NEVER seen that!" from the dealer. Then I found out this was a relatively common problem once I poked around on the net. I also found out that BMW had quietly reworked the part on newer bikes, more than once! After some haggling back and forth, I did eventually get BMW to send me a brand new final drive. In the end, I basically paid for the labor to fix the bike. I was okay with that because it was not that bad considering they did some extra work for me while they had the bike. Six months later a recall was issued based on that failure. Lots of folks on Advrider were sending in paperwork to BMW proving they'd paid for the repair prior to the recall and BMW was cutting them checks for it.
So I am not sour on BMW, yet... Yes, I had to go round and round with them a bit. But I LOVE my 1200 GS. I did eventually sell that 05, and having a brand new final drive on it actually helped me sell it since it had 60K miles on it. I replaced it with an 07 1200 GS and had the recall work done on it since it too had the defective hub. Other than the hub failure, which admittedly could have been REALLY ugly had I been moving at any serious speed, I've had no other issues with the bikes.
I remember with the 1150 series of shaft drive boxers that final drive bearing failures were pretty common. My 02 1150 GS blew out the bearing at 28K miles. It was out of factory warranty because of age, but I bought the extended warranty and it was covered. Again, that was the only issue I had with that bike, and it DID go out at high speed in a corner! I still don't know how I got that stopped without crashing. I can't remember if a recall was ever issued for those, but I know a LOT of people stayed away from BMW because of that particular issue. BMW would not admit there was a problem. However, they made a big deal out of the new final drives on the 1200's when they first came out, especially the, "sealed for life" thing. It did not take long before that got changed back to changing the fluid on a regular interval.
I had a KLR too. No problems with it. However, we ALL know about the doohickey issue. That was a known issue FOREVER with the KLRs and it could destroy the engine. Yet, Kawasaki never did anything to fix the problem in over 20 years of production of that bike. I don't know if they made a change when the newer models started appearing in 2008. For many years in the late 90s and early 2000s, Honda was having all kinds of issues with their regulator/rectifiers going out and frying the battery/stator in the process. It was particularly bad on VFR 750/800s. There was much howling about it on the emailing lists and forums. Honda never issued a recall. I think they did finally start making a different/newer reg/rec on new bikes, but never admitted there might have been a problem. MANY riders, myself included, got stranded in the middle of nowhere with a dead bike during that time.
Every time we see a thread like this, people swear they will never buy X brand of bike again. Usually, it gets pointed out every time that ALL of the brands have issues. Sometimes they take care of it, sometimes they don't. The reality is that for most failures, the number of units affected is typically a small percentage of the total built and sold, NOT ALWAYS, but most of the time. Someone mentioned the new Bandits consuming oil like crazy, and I think the newer KLRs had a similar issue when they first came out. KTM's 1190/1290 bikes had some air box issues in the last few years that allowed crap to get in the engine. In the end, you'd be hard pressed to buy a brand that never had problems. I think the best you can do is buy the bike you want. Then hope you are not so unlucky as to be one of the people in that small percentage that might have a problem, or hope that if you do have a problem, it is one that affects everyone and has a better chance of seeing a recall.
In the end, I don't think it is realistic to expect manufacturers to fix everything that pops up on bikes that are out of warranty, even if it is a defect or design flaw. As was pointed out, there is a reason why warranties expire. If they did not, we would be paying for it in higher prices up front. Engineers aren't all knowing. They do the best they can with the knowledge they have. They learn from experience and try to do better on the next design. Big problems usually affect a lot of people all at once and show up pretty quickly. Those
usually get resolved. Problems that affect only a small number of people may show up much later and one can only hope the manufacturer sees it as being in THEIR best interest to take care of it. Whether or not they get resolved is often hit or miss. This is part of the risk we take in purchasing ANY product. It just really sucks when we happen to be one of the people that get stuck with a big bill when it doesn't get taken care of.
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Not to mention the number of hours it takes to pull the engine, tear down, clean, inspect, and rebuild. 
