One of my previous cars was the E92 M3, but with the DCT. I was super excited when I ordered it after coming out of an E90 335 and prior to that the B7 A4.
Driving experience was great, great handling, super fast shifts and fast. However, overall I wasn't as impressed as I expected. Torque was lacking and while the driving experience was great, the caveat there is that the experience was only great when spirited driving was desired. Granted, this was 90% of the time; however, certain days I would have been happier with an easier ride.
Admittedly, I do wonder over to the BMW site to look at the M3, but I don't believe this would give me the overall experience I want in a car. Moreover, I cannot get past how the hood sits on the newer models - my on earth did they stop the hood with such a prominent line straight across, this, to me, is an awful eyesore, much worse than any dash mounted, table navigation.
For me, the S4 works very well with my needs and it doesn't have that d-bag factor that looms over the BMW (in my area). Slap on a few mods (suspension, flash, exhaust, intake, etc) and the S4 rounds out very nicely with less than the M3.
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