I don't understand the hate for this car. It is exactly in line with BMW's other recent "is" offerings.
It's not an M and it's not supposed to be. Of course it doesn't have an LSD. It's a regular series car with some parts from the Performance catalog and a few cosmetic bits. If it's only $2200 more than the regular M-Sport, what is there to complain about? You get the exhaust, arguably better wheels, cool blue stitching, plus the PPK of course (which comes with a lot of hardware upgrades that no aftermarket tune offers).
No, it's not the most bad ass car ever made. But if I were shopping for a 135i in 2013, I definitely think I'd choose this over the regular car. I would still upgrade the suspension, but a lot of the other modding would be done already.