I have driven both extensively and have to say the e92 is a fantastic car. It is superior to the e46 in every measurable way and makes a truly amazing sound. The e92 is good value at the moment too. Only thing with them is they use fuel like there is a hole in the tank. E46 is a much slower car, more low tech..but its more collectable at the moment, is a total icon and IMHO has a great look.

Both are fine cars but it depends on what you want to do with it. The whole SMG thing is a red herring. Everyone goes on about a manual basically because Chris Harris has told us its more involving but the SMG is easier to live with and faster on track or when really pushing on. The are not that unreliable and hell a SMG is easy to convert to a manual if you want ,it has everything already just a pump and computer attached to the gearbox. I actually like the feel of SMG2 its savage, but no doubt the manuals are more in demand.