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I think that the only people qualified to answer are those that have owned/own both. I have, and a MY09.535 so here's my take on it.. But keep in mind, I don't care about the cost of gas, tires, insurance, etc...
The 535i is the best daily driver. It's comfy, fast and quiet. In my mind the new M5 would be even a better daily driver than the 535i because, well, it's simply better.
The m3 is a better car for everything, daily driving included than the 335.
My rationale for this is really easy to understand - I like to smile when I drive daily and the M3 produces bigger smiles on my face IF, I choose to drive in a small car for a daily driver.
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