There's been talk of the M1 as well as denials by BMW. Edmunds mentions it in passing in their recent review of the E92 M3.

What do you think BMW should do? Does it make sense in terms of price and performance, especially with the 135i coming with the highly tuneable TT 300hp engine?

I personally think BMW should do something radical reminiscent of the E30 M3 and priced around $50k...the new M3 is hitting in the $70's now. I think there's room for the M1 in the marketplace. I guess the question is which engine?