The OP is right. BMW is swimming in choppy waters with "Efficient Dynamics" and the M-Division seemingly at odds in missions. They'll never admit to that, but going from 414HP to a projected 450HP for the next gen "M4" just won't be enough warp drive to smoke monsters like the C63, Boss 302, and GT-R's of the world.
I suppose that's at least good news for the after-market tuning industry.
2011 1 Series M Coupe VO M3 vs 1M Comparo Review
2011 M3 E90 DCT ZCP (sold) * 2010 335i Sedan (sold)
2005 M3 Convertible (sold) * 2003 325i Sedan (sold)