I guess because I'm lucky enough to have the good fortune (and sense) to drive one of the best vehicles on the road today (looks, performance in relation to gas mileage, fun factor, well-made), I ended up feeling as though I shouldn't be too frugal with her maintenance!

As it turns out, the rotors being replaced were beyond resurfacing, so it was a wise decision. Original or not, they've taken quite a beating on my Z4. As you noted, the newer pads aren't as forgiving as the asbestos ones of old. Curiously, the rotors listed at the local parts house for my model were 1 inch too small in diameter- an '08 set fit the bill. Probably just an error in the parts house database.
Thanks for the Dot4 info. The repair shop would not agree to flush my brake fluid. They aren't accustomed to working on sports cars (with the extra stress our "spirited" driving puts on the braking system), so they said to do so was a waste of my money and their time. It was surprising, since I offered to pay extra for the service. Anywho, the bill was a bit more than the quoted price- $225 labor, and an aditional $44 in parts for the larger rotors (once the boss heard about the offer of "free" install on the rotors and the wear sensors, he "corrected" the price upward, but did not do the work until I had approved the charges). Still, I figure I saved around 40% to 50% off the stealership price. I'll have the fluid flushed elsewhere, which should run $60 or less.
I've only driven it about 6 miles with the new hardware installed, but the brake pads light is still on. Perhaps it takes a few miles to break the pads in?