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I've street and track driven both stock and track ready E46 M3's and E92 M3's. Stock vs. stock the E92 is a clear step up from the E46 in almost every regard, both on the street and on the track. A 'lightweight' spec E92 (no iDrive/Nav, coupe, carbon roof, 6 speed) is only ~100lbs heavier than a typical E46. On the street the E92 is more comfortable, more refined, a nicer place to be in, all while having more performance than the E46. On track, again the E92 is a step up from the E46 when comparing both as stock cars. The E92 has a better front end (turn in is more precise and less understeer), more stable, better brakes and more forgiving at the limit (likely due to the longer wheel base). The E92 is also a much more rigid chassis and you can certainly feel it on track.
Track prepped E46 vs E92 the differences become much smaller. The E46 has the advantage of being quite a bit lighter, but power to weight of the two cars is actually very similar. E46 is smaller and more nimble while the E92 is more stable and forgiving. Similarly prepped E46 vs. E92 feel quite similar on track overall and the difference is much less noticeable compared to the cars as they are stock and on the road. Both have advantages and disadvantages for a track car, but performance wise they are extremely similar in a track-car prepped form.
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