Ok Guys,
Here is the deal. I previously owned a 98 Legacy GT AWD, with majorly modified suspension the right way, and not slammed. It was one of the most fun cars I've ever driven, and my very 1st new car. Now I own a 01 540i6MT. All I can say is my average speed around 90 corners is faster than my 540 easy. The GT's chassis balance was awesome too 51/49% f/r split. Sure you cant expect too much power out of a 2.5L 170hp engine, but cornering under ACCELERATION and surefootedness is no doubt better than any 2wd. With the Z rated tires, and high performance suspension, I seriously needed 300hp to shake that car loose as it was superglue.
I drove a chipped 307hp 02 S4...which was one of my choices before getting my Bimmer. The S4 fit like a glove, and AWD rules over 2wd in giving the driver a feeling of superhero confidence. Till today, after test driving Z06's, E46M3's, 5406MT, G356MT and many more.....AWD rules on street driving when you have cambered roads, and also with a whole bunch of crap on our roads like sand, oil, water. Its not the race track...if it is, then I choose 2WD with awesome tires and a well balanced chassis ala BMW. One can put ALL the power down during a 0mph launch without any tire slippage on an S4 or WRX STi, or EVO. Now there is no way I could do that with my 540 without traction kickin in. In fact I need more skill to launch properly than if I had AWD due to the fact that it has humungus torque at low end...AWD is more repeatable, and less skill is required. You should take note, almost everytime an article is written on an AWD car, it always contains the word "surefootedness"...this I have never read on a 2wd car.
The 540 is a fun car, and perhaps one of the best sport sedans ever put together. I believe Motor Trend wrote an article comparing the 015406MT, with E Calss 430 Sport, A6 4.2Q, and another car??...and they chose the 540. Every car in this segment is a sweet ride, and it comes down to budget, whats available, and what do you really like. I personally like AWD for street driving, but I did not get the S4 back then because of the subcompact size....not to mention, I love the e39 body style, and the low end troque of a V8 that sets you back in the seat
. I have eased off on taking corners spiritedly, and look forward in dipping in the juice once straightened up.
At the end....get what you like and fits within your lifestyle....but make sure you drive all your choices, especially in this segment.