My E46 really is an awesome vehicle. In this car you can enter a turn using all engine-braking, turn the wheel and the car will seem to make a perfect pivot, as if it had been planted on that point. If you go in too fast, an instant of understeer will slow the car to the right speed and then the lightning quick turn will begin. It really is tough to drive it poorly (in good driving conditions of course). The engine sings. I saw a review that said the exhaust note is inadequate, I found the engine to have a beautiful sound, it actually sounds similar to a racecar, very nice.
Engine, if I had opted for the SMG, that would probably be on the list too. (still like the old-fashioned way). The fact that you can do 0-60 in under 5 seconds with a full load of groceries in the back.
V-8? NOOOOOO!!! BMW was reportedly the first company to turbocharge a production car, ///M should have taken that route, and be true to their heritage when seeking higher levels of performance. Oh yes, and bring back the 4-door model.