Geoffrey, i had a brand new E36 325 regd July 94...and changed it in for used 93 E34 touring in 1997 .Given the choice, based on pure driving pleasure, i think the E36 was smooth , powerful and extremely agile ( stock setup even) in auto form as well.
The E34 is obviously heavier, and "less fast" and less nimble.But it is a smooth highway cruiser,with more space if u have a family.
If you basically are the only person in the car most of the time , go for the E36.
I believe that a "pimped up" E34 like Toms is def quite the looker.
Just buy the most powerful engine option u can afford and u shd be happy with both.
Dont even consider the lower 2liter engines.
If you have the extra monies to spent on pimping yr new ride( like nice wheels , lowered sus, dark windows, new lights nice paint job, my opinion: the E34 is yr choice.It has more presence simply becos its wider and longer.
At such low prices now, its quite exciting to "collect" such cars.