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I've had both and the G20 is a far better car than the E46 M3.
My first quibble is that BMW's marketing shtick is not in line with any car they've ever built. The ultimate "driving machine" surely would have the best interfaces, the best feel. No BMW has ever been able to compete with Porsche in that regard.
The actual promise of a BMW is a sedan/saloon or big heavy coupe that is "grown up" while being "pretty good to drive."
The problem with the E46 M3 is it failed in both regards. It wasn't very fun to drive and it wasn't very comfortable.
Because of the way compromise usually works, you'd expect any car that did one of those things better would do the other one worse. But the G20 is way faster, way more fun to pilot around a narrow mountain road, and way more comfortable.
A purist may scoff at the tech but considering how much better it drives (whether aggressively or sedately) the abundance of tech certainly isn't causing anyone to do without anything more pure to the driving.
About the looks... different strokes right? But let's not pretend old BMWs were good looking
E46 - dull
Z3 - clown shoe
the post E46 era with the Tim Burton Joker smile headlights
They only recently started to look good. Some of the new cars are missing the mark but the M3/M4 grills look great thanks to the way the painted body panels juxtapose directly next to the black openings without a trim.
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