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well what we have heard (i believe it was from SCOTT's mouth/keyboard?) was that there will be an M1 and it will enter the market as they take the 135 out. therefore it doesnt have to "fit" between the 135 and the M3, it is going to be what an M3 would have been if it didnt have to compete against the RS4, IS-F etc.. and didnt have to be based on such a fat-ass chassis
peak output horsepower can be a bit above where the 135 is from a revamped, lighter 3.2 (which will save significant development costs, hopefully) enough to where they could chop off a good 400lbs (i know, probably not, but wouldnt that be nice?), put in a lsd, CF roof, make it stiff as a brick, imagine.. and even if you can catch up with that in the straightaways in your tuned 135, you wont be howling with laughter like the M1 fellow will be
that being said, i like turbos and the 135 would be perfect for me. i dont need 100% rawness. although really it would depend on throttle response and what kind of low rpm torque i could get out of the M, which i wouldnt expect to compare to the 135
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