True, but I think the logic is that if you don't need the larger car, you can save money and weight(?); not that it is a 'budget' BMW.
Of course, the real kicker is that a 3-series coupe can get ED pricing of Invoice+$1500 or better, compared to no real discount for the "new" 1-series.... meaning the 3-er might be the same price! YMMV of course.
Was: 2008 335xi sedan 6MT Black Sapphire Metallic
Is: 2013 Fiat 500 Abarth Nero (black metallic)
Wife's: 2013 Infiniti G37 S sedan 6MT, Black