This makes no sense. How can the new generation M3 have only a slight power bump over the 1M. The 1M will definitely weigh less, and is a "lower tier" M car as well as being an "older generation." I don't believe the 420/395 numbers for a second.
Unfortunately the "whole package" arguement only sells so many cars in the era of hp wars. The Mustang GT surely sends shivers down the spine of most M3 drivers these days, especially when the Mustang GT has near M3 handling....