Beemergirl: Maybe I can offer my $0.000002 (after taxes). I typically break down paint correction as follows:
1. Cutting (usually wet or color sanding to remove scratches or severe surface defects) and Compounding. Most cars can handles 2-3 cutting process during the life cycle of the car. A paint thickness guage is an absolute must to measure a starting thickness and an ending thickness. Most BMW's that I use the cutting technique have never had this process done. If they had a previous cutting process, I would know it when I used the paint guage. I use this process on areas where there is severe scratching.
Compounding is 90% of the work I do. Compounding with a compounding pad (sometimes called a cutting pad) or wool is for surface leveling and removal of all scratches and scrapes. Compounding also has different levels of aggressiveness. From a light compound like Optima to a heavy one like 3M Extra Cut.
2. Polishing. Polishing automotive paint removes light surface scratches and swirls. Following compounding (which actually produces uniform swirls of its' own), polishing brings the paint to the reflective surface you are looking for. Polishing a vehicle 2-3 times per year, depending upon vehicle usage, will not remove a measurable amount of clear coat.
3. Waxing. After the work is performed at the shop, the last step is protecting the work I've done. Because the cars I recondition are for resale, I don't know what the customer wants or how the customer is going to treat the car, so I give them the best possible paint preparation I can. I've had some customers bring their cars back to me after 1 year and they still look fantastic. I've had others treat their cars like Michael Vick's pitbulls!
So, polish away and enjoy your Z4!
Here are some visuals for reference:
First a BMW 745 with 1 door wet sanded (that door had been repainted by a shop and had a lot of orange peel finish) and the other door compounded.
Next up is a black Z4 that had a lot of scratches and swirls. This only required compounding as the base process
The compounding process actually produced more swirls which would be removed with polishing. This pic shows the compound swirls. I've seen cars in this condition that were "detailed" at a car lot....and left in that condition!
Finally, the finished Z4
And....the 745 doors that were wet sanded and compounded
Have fun!
Toto