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Whoa, cool find.
I also owned an E83 X3, and yep, the steering is better than the E90 xi cars, way more steering feel and self centering. I got a RWD E90 instead of messing with the steering rack, but I do think the difference between the E83 and the E9x is in the damping setup of the rack, ie, how much drag is engineered into the rack to isolate the driver from road feedback. The E83 feels a lot more like an E46 than an E90 despite having a very similar front suspension design (double ball joints) to the E90.
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