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I guess I am in the minority. I drove both, could afford either, and wound up with an E90 335xi. On public roads I can't even push the 335 to the limit so an M3 is out of the question. In addition, I am not going to track my car so why pay the extra money for a couple of ticks in the quarter mile? For day to day driving, the 335 was a better choice for me: better low end torque, AWD grip in inclement North East weather, better gas mileage and enough handling prowess to keep a spirited driver entertained. I picked up an inexpensive/mild tune (SSTT) and am happy with it.
I have owned both E36 and E46 M3s and both were brilliant. The difference is that they were far and away the best 3 series. IMO, the lines of separation in this iteration are a bit more blurry.
I feel both the M3 and the 335 fulfill their respective visions quite well. For some people with more conservative needs, the premium in price is not worth it.
Of course I have to deal with the Fast and Furious crowd a bit more now but they share a passion for performance much like the M crowd and most of them really know their stuff.
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