I've been in a 335i manual and have driven a 335i automatic. With acceleration figures so close if not matching the E46 M3, a comparison between the two is inevitable. The 335i has monsterous torque and a more V8-like sounding exhaust note, which is some people's tastes. If I had to pick between the two beautiful automobiles, my nod goes to the M3. The 335i lacks an LSD, which can make cornering iffy. I don't miss the extra torque and prefer the high-strung character of the E46 M3. Plus the E46 is styled better and has a more driver-oriented interior than the plain jane-straight-off-another-3-series interior.