Agreed. The M3 is a chavs car. I see so many of them driven by nob'eds who have no idea how to drive, but they want it for the name. To be honest, I would never buy a BMW purely for that reason.. I wouldn't want to be associated with a large portion of BMWs demographic. Now that may sound snobbish, but unfortunately that really is how I feel about them.You give far too much credit to the M3. The M3 is only fractionally faster in the straights due to the low torque (295 versus 325 lbs feet for the S5) and through the twisties -- who knows yet. Top Gear was able to beat the old M3 on the track with the B6 S4. It's more about driver skill and knowing the differences between the car's dynamics.
But even if the M3 gets to 60 in .1 or .2 seconds faster and is a fraction faster in the quarter mile.. who cares? It looks hideous and every douchebag with 60K who wants some kind of bragging rights will buy one. Who wants to be a member of that club?
Under normal driving conditions (not on a race track etc) the S4 has been proven to be quicker than the M3. That leads me to believe that the S5 will do even better. The RS4 has proven quicker than the new not yet for sale M3 coupe, so I can only imagine that the new RS4 and the RS5 will blow it out of the water on the track as well as continue to do so on the roads.