I had the E36 325i. I was so glad i didnt go for the 318i after hearing some friends complain about it being slow.
When the E46 was introduced the prices went up and the 318i was financially more attractive than the 325i. What more with a newer and better 1.9L (then later a 2.0L Valvetronic). Somehow i still felt something was lacking when i test drove both the 1.9L and 2.0L.
Finally when i came down to ordering an E46, i went with the 325i. Any regrets? Nosiree!! What glorious smoothness and aural note (with the added ACS rear of course!).
Perhaps one day when its time to move on to something else as a replacement, it will definitely be another silky straight 6 in my garage. Ok, perhaps a flat 6 (if my allegiance change) or V8, but i'll avoid a 4 banger unless its a small toy car like a MINI or something Japanese for the missus.