I have the leatherette, and think the positives and negatives are evenly balanced. Positives: durable, easy to keep clean, looks like it came from the cow. Negatives: not a supple as leather (though the BMW leather is not great), doesn't breath in hot weather.
After the initial wear-in period (it felt a bit rubbery at first) nobody thinks it's anything but real leather. Save the $1500 and get other options like NAV or Xenons.