beemers3, as far as OEM setups go, the M-Sports calibration in conjunction with the RFT 18"s is arguably the best setup/compromise.
If you're concerned about ride quality, I'd go aftermarket:
1) Ditch the RFTs for some quality tires like P-zeros, F-1s or PS2s.
2) Go with coilovers! Folks who did KW Variant 2 and 3 swear by the renewed ride comfort despite the agressive drop. The V2 and V3 are fully adjustable so you can set the rebound rates (and compression rates on the V3) to your heart's content. The Bilstein PSSS9 is recommended as well although for some reason the KWs are more popular.
Some folks have tried the Tein and eibach coilovers with some success. Generally speaking the H&R springs and coilvers tend to be on the hard side.
I was wrestling between H&R Sport spring and Eibach Pro-kit for my E90. They both give a moderate (and classy) 1.2-1.4 inch drop but the eibachs is said to be more comfortable (what I was looking for) than the popular H&R Sport.
Some folks argue you'd need a true coilover or damper upgrade in conjunction with the springs, to lessen the strain on the OEM struts/shocks. My thoughts on this is that 1.2-1.4 inches is not much of a drop and the OEM struts are robust enough to handle the heavy unsprung mass of the RFT/wheel combo, so they should last ok. Besides, I'm not keeping my car that long with an upgrade on the horizon, but its something to think about.
Btw, if you're looking for handling improvements, I recommend upgrading the factory anti-roll bars to the H&R or eibach units.
I'm looking forward to my eibach springs. It's going to give the aggressive look to go with the staggered 197s. My concern right now is there might be some rubbing as I'm running 15mm spacers at the back with the 255/35/18s. I don't see much clearance, but then again the drop will give a slight negative camber at the back so the rears will clear nicely, I hope...giving me that flush fat-wheel-in fender look.
A friend photoshopped me a drop in this pic. This is what I'm shooting for!