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I want to say that I read somewhere that the N55 will no longer be compliant with emissions standards, or something to that effect. Combined with the fact that the S55 probably costs less to produce now than when it was introduced, and that the M3/4 will be transitioning to a new motor, so there won't be a risk of cannibalizing sales...all of these things contribute to the decision.
From a performance point of view, you're getting a true ///M motor, with a closed deck, two turbos instead of one, and a hell of a lot higher tuning headroom (if you're into that kind of thing). You also get a motor that makes power to redline, as opposed to the N55 which drops off a cliff after 4500-5000rpm, where the single turbo runs out of steam. As a complete package, the current M2 is really well balanced, but the S55 will make it an animal.
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