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The M3 is a track tuned performance car. The M340i is a road tuned performance car. They have a very different setup. I'd pick based on where you do most of your driving. The only reasons to have an M3 over the M340i for the road are bragging rights and to feel a bit more special. The M340i is going to be easier to live with though.
Sounds like you are more of an X man anyway. They are OK, if you need a fast van.
If it were my money, id get an M340i and with the £30k spare change, I'd buy a second hand full fat M from the previous generations as a weekend car. Either an E92 M3 or an F82 M4 Competition.
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