I test drove a 135i (manual) some years ago when my DD at that time was an e46 M3. My memory of the car was that it lacked the composure of the M3 but it certainly didn't lack anything in straight line acceleration....a very quick little car.
I can't remember being disappointed with the gear change and although my memory is a little vague, the steering feel was comparable with the M3 and therefore not as quick and direct as the 86, but not entirely lacking in "feel". Seating position was a little more elevated than the 86 and I think the ride and handling was probably more similar, than it was in comparison to the M3. You certainly do notice the lightness (lack of weight) of the 86 compared to the BMW's.
Interestingly I have more confidence in punting the 86 hard into and around corners than I remember having with the 135i
the M3 was at another level again and matched this with much higher grip levels given the superior nature of the wheels/tyre combo.