I had an N54 135i and now how 35i Z4. As far as handling goes the 135 had much better steering feel and was a stiffer car overall. The Z4 is softer and more floaty then the 1.
With that being said it felt just fine at 160mph on the autobahn when I did ED.
My Z has ivory extended leather and the look and feel of the interior is much nicer then the 1 series.
The transmission on the Z seems to be geared a little different and the exhaust sounds much louder and deeper than the 1.
For 20 bucks a month less than my 1 135, the Z is a clear winner.
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