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Welcome to the E30 club. +1 on joining revlimited, it's one of the best E30 resources out there. I wouldn't do an M20; my E30 has a 2.9L stroker that I built in 2002 when M50 swaps were still pricey, and I wanted to keep it original. As much as I love my built motor, if I were in that same boat today I wouldn't think twice about doing an S54 swap and keeping it naturally aspirated. I have a friend who did an S52 swap, regretted not doing the S54, and is now doing the S54. It's one of BMWs best engines ever and it fits really well in an E30. Good luck with whatever you choose.
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