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It depends on your perspective. I think the E9X M3 comes much closer in performance to its higher priced "competition" (e.g., Porsche, etc.) than the E46. The performance gap is definitely closing along the entire spectrum of today's cars.
By the same token, the E9X has much more (and much better) competition in the same class than the E46. The luxury sports sedan/coupe market has exploded both in terms of quantity and quality since the E46 entered the market. The new competitors are able to put up better performance numbers as compared to the E9X M3, but they still can't duplicate or best the inherent driving feel of the M3. That intangible is what has always set the M3 apart and always will IMO.
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