but being priced in the 60ks...BMW will have a even harder time moving the slow selling MZ4's (priced in low 60ks) which uses the old M3 engine

Completely different cars. The M3 is a large-ish sports coupe and sedan. The M coupe/M roadster is a pure sports car. I don't see many people cross-shopping these two. BMW manages to sell the Z4 and 328 side-by-side without too much trouble.
I was unexcited by the V8 at first, but I've grown to accept it. It's not an American V8, with tons of go but nothing else... it's a highly technical, race-inspired V8, which I think it really cool. And, more power, less weight, and better mileage? I approve.
I wasn't aware that they were considering an AWD version... that would make it absolutely perfect, imo. I love the M3, but always come back to the RS4 when fantasizing about these cars because of the AWD. But an AWD M3 would be pretty tough to beat.
Not sure I like the styling on the coupe - it's a little to in-your-face, but the sedan is very nice (and what I would take, anyway). The coupe was unlocked at the autoshow, very nice inside.