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I'd love to see an E89 M Roadster and one (will most likely) be forthcoming at some point. The last two M Roadsters, BMW said they wouldn't build and they did. They said the rumors of an M version of the X5 were false and then they released it. So on n' so on. With their track record, a new M Roadster looks like a real possibility.
That all being said, I don't think it would be competition for something like the R8 exactly. The M Roadster has always been a simple transplanting of an M3 engine into a Z. Dropping a 414 Horsepower engine into a Z doesn't exactly make it a direct / huge threat to the 560 horsepower R8.
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