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I've been on both sides of the spectrum even after I already had 100 track days or so, from lightly modded BMW's to full blown racecars. The only time a low hp racecar is worse than a nice street car is DE's where everybody there has 400+ hp and you're a chicane even well-driven. The racecar provides peace of mind that you can trailer your heap home if the worst happens, and a 6 pt cage lowers the likelihood of serious injury. And g-forces on slicks and with a light racecar make street M3's look silly (not hating, I love my M3 too!).
Dedicated racecars rock, although purpose built ones a bit more than the production-based. I suggest E36 M3 racecar if your budget is real tight, or Formula Mazda/Ford/SRF if it isn't as tight.
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