the highest performance versions of the LS engines that are backed by manual transmissions don't use displacement on demand. the automatic versions do, tho, because i think they are trying to fool everyone into thinking that automatics are better and manual transmissions are for people that hate the planet or something. this is why the automatic V8 Camaros have a better mpg rating than the manual transmission versions.
what kind of gearing does the BMW's use? i don't think GM puts anything deeper than a 3.50 or so gear behind an LS engine in passenger cars, and they cople that with steep overdrive final gears in the transmissions. low cruising rpm+lotsa torque= good mileage when you want it and fun when you need it.
but GM V8's getting good mileage in performance cars is nothing new and didn't start with the LS engines. LT1 powered Corvettes, Camaros, and Firebirds from the mid 90's are known for getting close to 30mpg on a regular basis and the big LT1 powered Caprice wagons that weigh in north of 4300 pounds can also get mileage in the high 20's while being surprisingly quick and agile for something that size.
one other thing i noticed when poking around teh interwebs looking for random info on my 86 Camaro is that the carbureted 305 powered cars had the same EPA gas mileage ratings as the "economy" models with the fuel injected V6, despite having close to twice the horsepower and torque.. granted, it was the 80's and "high performance" is a relative term, but it shows that building efficient and torquey V8 engines is nothing new for GM.