I've owned 3 M3s (2xe36 and currently a e92) and a bunch of other BMWs, I bought the Z4 for my wife but have absolutely fell in love with it. I love the looks, the motor, the trans and the drive. I'm not sure it would be my pick as a track car, but IMHO it wasn't built for that. The IS motor is so torquey and easy to drive at all RPMs and the DCT shifts flawlessly.
I find myself driving it anytime I get permission to do so.