It's not just E46 M3's that have lost it's exclusiveness... it's BMW's in general. BMW's used to be a rare commodity on the roads... now you see them on every street corner. It's not uncommon that I'm driving in a "pack" or 3 or 4 BMW's bumper to bumper...
People are making more money, these cars are becoming more affordable... BMW puts them out because, in the end... BMW is just another business, out to make a couple bucks. That's the truth right there.