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A car backed by factory engineers produced on a large scale with full factory warranty will almost always be better than a car pieced together by enthuasists / shops / forum research. With the amount of mods you'd most likely need to bring a 340 near M3 level you can also kiss your warranty goodbye, which is probably not a good idea for a daily drive IMHO.
If the OP is just looking for a daily driver with some ooomph then I'm all for a simple chipped 340i. That thing will still be a blast but it won't be an M3.
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