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Being a non-turbo engine, the S65's specific toruqe is 73.75 lb-ft/liter. The highest of any road going car is the new Ferrari 458's 89 lb-ft/liter, but I doubt the 458's engine is as long lasting and reliable as the S65. By comparison, the M159 in the E63 (the H.O. version) puts out 77.31 lb-ft/liter (it's rated at 480 lb-ft of torque out of 6.2 Liters). So the M159's specific torque output is a little higher (4.8%), yet the S65's specific power out is much higher (13%) at 103.5 hp/L, compared to the M159's 90.8 hp/L.
Not that the M159 isn't a great engine (who doesn't like 563 HP and 480 lb-ft), but it helps put in perspective how good the S65 truly is. Both engines have a fairly flat torque curve from 3500 rpm onwards, and last I checked 295lb-ft of torque was plenty. And as others have stated, the car is geared properly to exploit the torque that it has. Plus, there's no point in having more torque if it's going to unsettle the car coming out of corners. There has to be a balance, and the engineers seem to have struck that with the M3.
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