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The key is the area under the torque curve and not the peak torque.
Having a car with high RPM's (M3, F430, GT3, etc) allows greater torque multiplication via gearing, which allows more work over time.
Having a car with more RPM's to work with allows it to have a mechanical advantage. The higher torque/lower HP car will pull away initially. As the car with higher torque/lower HP shifts into 2nd, the lower torque/higher HP car will start pulling away, because it's still in 1st gear. In 1st gear, it's putting down much more overall torque.
That's why a F430 can achieve a trap speed of 120 mph for a relatively low torque car. The above is also the reason F1 race cars have a pretty low torque of 300, but a HP of 900 and a redline of 19,000.
The thing slowing the M3 is it's weight.
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