yeah, the M42 car isn't brutally fast, but neither is an M20B25 car. A lightened 318is can get very peppy, A few of my friends that have ridden in my car have said that they were surprised at how hard my M42 pulls. Sure, an M20B25 may beat it in a straight drag, but I don't think it would be by much.
My 318is gets 30 mpg average, and that is me driving like an asshat. That is by no means worse mileage than an eta. and daily driveability of a 318is is as good as I can ask for. I would rather DD my car that is nimble and tossable all day long rather than my wife's E39 for example, or my in-law's E34, or any of my E28s, etc etc.
Another few things about M42: better hp/liter than M20B25, dual overhead cams, timing CHAIN, 4 valves/cyl, WAY easier to work on, way more room in the engine bay, lighter, etc etc
If you want to talk to some people who really respect the M42, go to M42club.com.
That said, I am planning to ditch my M42 for an S50, eventually, because it is true, I can't bake tires in the first four gears and I can't leave corvettes behind with my M42, but it has been dead reliable and served me well at autocrosses, a track day, and DD every day w/ 220k on the clock.
and here is a few pics of my 318is:






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