Both are great cars. I owned an E46M for 100k miles while I put 30k on my E92. Took both to the track, drove them side by side, etc.
I find that frequently you get comments about how raw an E46M is and how tame a E92 is from people who have an E46 modded to the moon and back.
My E46 was largely stock, as was my E92, and at the track the delta was the largest there has ever been in a BMW I've owned. A stock engined E92 is closer to my F80 CS than an E46 is to the E92.
Both are great cars and I'd be happy with either.
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