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S54 compared to an N54 is pretty different. The S54 really comes alive above 5k rpm, or right about where the N54 is becoming pretty useless. Size is clearly a big difference, and the immediacy of turn in on the M Coupe will be much better. The M Coupe will ride a lot rougher and be a little nervous compared to the 335i.
I daily drive my Z3 M Coupe and really don't see many draw backs aside from the obvious lack of rear seats and small interior volume. If you don't need the practicality, the rawness, rareness and fun of the M Coupe would certainly win out for me.
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