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To some extent, I do agree with the OP's original sentiments of the e36M3. I had an e36 M3/4/5 for well over a decade as well. The 96+ e36 M3s are great daily drivers in that they have a lot of low end torque (relatively speaking in comparison to an Rx-8 or S2000, two cars that are constantly compared to it). However, as you mentioned, they do have relatively short power bands (redline at 6500RPM), and they also do run out of breath in the upper range. Due to this, a popular mod for these cars is the OBDI manifold from the 95 M3 that makes them breath better up top, while giving up some low-end power. Since most of your spirited driving/racing occurs in the upper range, and not the lower range, this was a good compromise. In this regard, cars like the RX-8 and S2000 could be considered way more fun due to the ability to wind it out well into the 8-9K rpm, as opposed to only 6500 in the e36 M3. All these three cars had comparable straight line speed, but the e36M3 weighs a few hundred lbs more than the Rx-8 and S2000 (and this shows in the handling dept where the RX-8/S2000 gives the e36M3 plenty of fits). The e36M3 was also considered a slight departure of the typical M cars with higher rev limits, individual throttle bodies, distinct body kits from their normal versions, etc. However, this did present it's advantages as well in that the e36M3 was relatively easy to maintain (no valve adjustments, no rod bearing issues, etc) that are present in the other "typical" M cars. The e36M3 was almost as easy/cheap to maintain as a 328i.
All in all, the e36M3 is a great car, and for the price that they can be had now, they would be great, inexpensive, and fun weekend/track cars. Just make sure all of the typical "maintenance" items have been addressed on the higher mileage ones (cooling system overhaul, power steering hoses, suspension (RTABs/LCABs/RSMs), etc).
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