I wouldn't make the same comparison between 335i and M3 as the e92 335i was a turbo engine and could be cheaply modded while the M3 was a N/A engine which required way more money to make it go fast.
I for one can never see myself purchasing a N/A toy, just not as cheap or fun to modify.
Also the 550i and 335i were out before the M5/M3 some people need instant gratification!
I sometimes wish I had bout the 550i and modded it so I didn't have a 130k car in my garage all winter.
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