damn yall are wild. all this projection/outrage...society is so fickle and argumentative nowadays.
BMW whored out the line plain and simple; there is no argument because the car manufacturer decides what goes; not all your opinions.
Forced induction leveled the playing field for everything.
Want to be special; drive a classic.
This is bad for ALL bmw owners regardless of models. All cars will depreciate more since there is dilution of the M brand; moreover the BMW brand.
We could argue all day what a real M car is or not....but not going to change how fickle society is. Some people buy cars for self-esteem; some for looks; some for performance. My sister is soon purchasing an RS5 god knows why.
Only reason I drive an M3 is because its a fast beautiful car with a manual. m340i does not even come close to the body of an m3. I guess we'll see with the g80.
Could I drive an m340i...sure...will it depreciate more when only costing a little less. you can bet your ass 
if bmw says the m320i is an M car; than it is. BMW run the show out here
This +a lot. Ha. Most manufacturers have diluted their "Sport/Motorsport" brands and get to make the call (marketing call) on what fits into that category. Get what you want and what makes you happy based on YOU, not what someone else might think of you...who gives a chit.
I've had "lite" models from both BMW and MB and have been quite satisfied. At some point, I will get a "true" M or AMG and have no doubt they will be awesome, as well. Some "lite" models are actually more fun to drive than a "true" model...SLC43 was a hoot at COTA vs the SL63, perhaps not a fair comparison, but all of these vehicles are pretty amazing in their own way. Manufacturers are going to do what brings them more sales and that means this will continue, for better or worse. I'm honestly just happy I'm lucky enough to buy/enjoy any of these vehicles, as a car enthusiast.