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TB,
I don't doubt you passion or belief but I don't totally agree with them. Quattro doesn't eat power as much as you believe it does, I know I have raced similar powered BMWs to my S5 and there was nothing in it, right the way up to speeds not to be said out loud on the net.
If by your thinking an S5 couldn't match the top speed of an E46 M3 but I can also tell you that you are wrong on that as well. Power plus aerodynamics are the key to top end and if a similar powered awd car can more than match it's rwd rival then that proves the transmission is not having the effect you believe.
Can't see the video but if one is a 4motion version and the other fwd then their is no lose of power from the awd system as all VAG cars run a Haldex 2 setup that only moves power to the rear when grip is lost at the front, so after the start all the power will be going to the front wheels just like the other car.
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