Have to agree that the price seemed a bit steep. Not by BMW standards, necessarily, but compared to other "beginner" bikes, over $8k is a lot for a new rider to swallow. I imagine that a lot of the younger entry-level riders they were aiming for either didn't have this money or figured that a $5-6k Japanese bike or even better, a used bike, was a better way to start.
The SV650 is another great bike but as you mentioned, the seat feels really tall for shorter riders.
The Monster 620ie fits short riders well, but if she's going to be following you on long road trips, the BMW is more comfortable and easier to fit luggage.
As for styling, it's a personal thing. I think the F650GS looks cool but I find the CS a bit odd looking. However, I think the belt final drive on the CS is great, clean, and low maintenance. I can't figure out why they bothered to make the cool single-sided swingarm then hide the wheel with that ugly muffler while the GS has the higher under-seat system that looks better, IMHO.
Then again, I've always had odd taste in bikes. I used to ride an R1100R, which had to be one of the oddest-looking BMWs they ever made.