I have driven the 335is and the 1M and in my view, there is definitely turbo lag, especially when you nail the throttle (in any gear). The S65 and NA inline 6's have instantaneous throttle response.
As far as torque is concerned, it all depends on whether you are properly shifting in the right gear that will give you max torque. The 335is and 1M may feel like it has more torque if you're in 3rd gear going 40 mph and want to accelerate, but from a standing start, the M3's torque without any of the nannies on is very difficult to control. There was no way I was able to get anywhere near the same wheelspin on the 335is with similar launch parameters (which in my view is a disadvantage of the M3 in a drag-race situation). As several posters have mentioned previously, you need to multiply the gear and final drive ratios by the torque at any given RPM to get a total torque at the wheels effect. With the M3 it takes a lot of knowledge on how to drive the car and hit the right gear (which incidentally takes a lot of work), as this type of torque/power curve is unlike 99% of the cars out there today (the exceptions being a few engines from porsche, ferrari, and honda). With FI cars, it takes less work to get similar results...some people prefer this (especially for everyday commuting), while others like to engage with the car more and row the gears. It comes down to personal preference.
Also, this notion of the 1M having being "faster" than the M3 is based on selective data mining and is so situation dependent. In straight line acceleration tests across numerous publications, the M3 (even in manual tranny) is the quicker car (esp. beyond 60+ mph). On relatively short, twisty tracks, the size and agility are advantages for the 1M (where it is objectively quicker) however on power tracks with long straights (like Nurburgring), the M3 is the faster car.