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I'm coming from a 335i in which I ran the entire complement of JB chips (JB1, JB2, JB3 and finally JB+). With the high boost map on the JB3 I think it was faster than the M, in a straight line. Certainly the ability to pick up incredible speed in any gear, any time made it idiot-proof.
Problem is, as soon as the speed increased, you started to feel the rest of the car falling behind, notably the suspension. I drove both cars on fast & challenging roads and on track (including the Nurburgring) and the M3 was much better. Not just suspension, but traction, LSD, turn-in etc.
I liked both engines equally, except perhaps sound where the N54 was nice and the S65 is incredible. Each shined in their own areas and purely from the aspect of motivating a car down the road, I would be happy with any one of them. (In fact, I was so close to getting a 135i and modifying it up the wazoo).
Engines aside, the M always feels more special to drive, drives better (especially in the rain) and looks cooler. I'm about to be re-united with my car this weekend (I think) and I'm pretty sure I will never look back with regret on the 335i...
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