Dont know about electrical expertise but two small problems spring to mind. First is that car builders are really tight with the amount of wire they give you and to make connecting idiot proof the wires normally terminate in a plug. Murphy's law says there wont be enough wire to relocate the switch and the plug wont fit your new switch. I think the switch is a combination of an on/off and what I believe is called a 'momentary' switch. They are pretty common but I am not sure if you will get a very small one. Ideally you want the colour to match the other switches. Maybe try Maplins or RS?
Oct '00 E46 330i. Feb '92 525i (departed)