The M3 is an entirely reasonable daily driver and a LOT of fun, but if you're coming from a diesel I would recommend test driving first. The d will be able to deliver far more acceleration without a downshift, whereas getting the same thrust out of an M3 requires you to be higher up in the rev band, which generally isn't done in the city because it makes bad gas mileage even worse and sounds obnoxious (but awesome!).
If you plan to track or at least drive on some fun back country roads, the M3 will be one amazing machine for you. If you plan to use it ONLY as a DD though, I would think very carefully about this decision. As other have said, your gas, insurance, and service/repair bills will all be higher and if your driving scenarios are only those where the M3 can't stretch its legs (and is arguably at a torque disadvantage), it may not be worthwhile for you.
If you're also considering a 135 or 335i, those would be better suited for DD, although I'm surprised you didn't add the 335d to the list. Are you unhappy with your diesel?