yeah, i agree i that i have yet to drive a benz with bmw-like handling and steering feedback -- but then i've not yet tried, e.g., an SLK AMG yet.
i HAVE driven, in no particular order:
mid-90s S-class (greatest tank out there?!)
2000 S-class (meh. not too impressed really)
2004? 2005? S-class (wow. impressed.

)
2000-2003 model CLK320 -- plastic interior
current ML350 (supremely comfy; surprisingly quick; beautiful interior)
E350 (see above)
E55 AMG (brief test drive ... holy POOP!!)
current SL500 (VERY impressive; the world's greatest topless? -- AND i'm nearly 6'5" and didn't feel like i was looking through the top windshield like i did in the 6-series convertible ... put another way, i fit perfectly!)
also, i'm with you on the diesel ... but BMW just announced (
www.leftlanenews.com; scroll down a bit) that they will NOT be releasing BlueTec vehicles after all; they want to go their own route.
HOWEVER: the 2010 toyota prius should finally combine the best of both worlds: DIESEL-electric hybrids

now if oinly they'd put that tech into a benz or bimmer, or any car with a little more prestige, luxuroy, and resistance to crumpling like a soda can in an accident, i'd be all over it........