I bought an FR-S...and a couple weeks later my buddy bought a 2008 135i. The amazing thing is that when it was all said and done, he ended up paying almost EXACTLY what I paid for my car---we both ended up at $29,xxx after tax, title, license, etc.
Yes, even with the M-Sport suspension it handled pretty badly, even on Pilot Super Sports; general understeer with power oversteer.
It's currently on Ground Control + Koni Yellows with 18x9's all around, and it handles a lot more neutrally. Unfortunately...it still understeers at the limit. He plans to do M3 LCA's next because his front camber plates are maxed and he still needs more camber.
So with suspension + muffler delete (I imagine that frees up a couple ponies) + Pilot Super Sports we went to an autocross together. I honestly consider him to be a bit of a better driver than me, but we're about equal, so we always have good battles in our respective rides. His best time? 46.8. My best time, in a 100% stock FR-S? 46.7.
The 135i is very fast in a straight line, even though it's a fat pig (~3400 lbs). It's quiet on the highway and definitely has bigger rear seats than the 86. I actually think quite often about how I could have had a 135i for the same dough. But do I ever regret my decision? Hell no! If I had to make the decision over again, I'd pick the FR-S every day of the week and maybe a BRZ on Sunday