1. BMW is committed to the M coupe for at least 3 more years. Several updates will be forthcoming, minor to major. One was the change from the Dunlop 8080E's to the Mich. Pilot Sports, which is now standard on all M cars being delivered.
2. The Euro motor, with 334 hp +/-, will be included in the 2001 model M coupe, however exact production scheduling, once planned for September, has been set back. Filling initial E46 M3 orders is priority, and is setting the shedule back for the update to the M coupe program. Probably first of year 2001. 6 speed trans is still not on the list of new items to be added, so don't hold your breath in that regard.
So, it appears we'll have our favorite toy around for a little while at least. As long as demand remains in the +/- 800 units a year range (M cars, with +/- 300 standard coupes), they're going to hang with it. Next is the standard coupe upgrade to the 3.0 motor.
One source I talk with regularly, has commented he wasn't thrilled with the E46 M3 motor at all. He felt the 4900-7900 power band was a bit out of whack. In his opinion and from what he was hearing, he expects BMW will correct the problem, get power down into the 4100 to 7100 range, where it belongs, within two years. He figures on hearing a LOT of complaints from E36 to E46 converts that the new car just doesn't feel as fast, and has to be zinged to get it to move.
Who knows, in the M coupe, it might be less of a problem actually. I'm popping the rev limiter a lot, I wouldn't mind having an 8500 mark, and, in the coupe, having a slightly softer lower end might actually benefit that stop and go crap in traffic, where the car now is a bit hyper at times.
In any case, I'll give them a couple years to work the bugs out. If it's a better car, I'll definitely move on it. If not... I can live with the car I've got.
So, good news then?