This is definitely a hard decision, welcome to the forum.
Some pros of the E46 M3 are-
-It's an ///M car.
-It has more aggressive styling.
-It has an LSD.
-It would be a better car to take to the track.
-It's cheaper.
-It is a NA motor (+ or - to some)
Some pros of the 335i are-
-It is newer (the latest of BMW technology).
-It has more out of the box tuning capability.
-It is a twin turbo (+ or - to some)
-It has a factory warranty.
-It is much faster with a little (might already be faster than the E46 M3 stock???)
-It is a sleeper.
Someone else may want to add more to this list later, but both cars have award winning engines for many years in a row and both are similar in speed although the 335i may be faster stock, still unsure. Either way you can't go wrong.
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