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I agree that the likelihood of a t/turbo v8 is slim at best, but why assume that it has to be a inline 6 with twin turbos. Is it not possible for BMW to develop an entirely new engine solely for the next M3, maybe the current vee engine minus a cylinder off each bank. This way the weight should be even less than the inline equivalent plus the length of the engine is almost halved and there is even less possibility of the engine overhanging the front axle and a better chance of adopting the turbo in between the cylinder banks.
South I would guess you already know the engine choice for the next M3 and it's an inline as you said, but to me it is a shame to not use some of the basic designs used from the current M3/5/6.
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