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haha the only people who have lost credibility are the e9x, particularly m3 drivers, who think they own a sports car. the m3 stopped being a sports car after the e36, although the e46 was amazing in its own right, it is not a true track monster like earlier M's were tuned to be. the e90 m3 is a disgrace to what old M's used to be, in fact the whole M brand is becoming a disgrace, putting the tag on SUV's, lol.
and yes, the ls3 is way better than the e90 m3 engine in most measurable aspects, but i don't see why anyone would swap it into an m3. why not just buy a z06, which is hands down a better performance car than the m3 (ls3 or not) will ever be.
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