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Competition is always a good thing, as it forces everyone to constantly strive for advancements. When the new S4 comes out, I'd be willing to bet quite a few enthusiasts will end up trading in their 335i. For example, the adjustable suspension and DCT in the S4 are only available in the M3 (for the US market). The new Quattro has a rear "sport" differential that allows for torque vectoring between the rear wheels, currently only available on the X6 as Dynamic Performance Control. It's features like these that will force BMW to trickle down the technology to the 3 series and up the ante again once the next gen 3er comes to market.
All in all, the new S4 looks pretty promising. Once they get the "Build Your Own" feature up and running, we can see what options there are and how the price will turn out.
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