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I'm not really a fan of the 1 Series, but I would take the M135i over the RS3. I prefer the newer tech in the BMW as well as the I6. Never been a fan of I5's
Hard to say whether I agree or disagree since we don't have either car in the States. With that said, I definitely would not mind owning an M135i, though I do feel use of the "M" on non-M models sort of dilutes the meaning of the "M" vehicle. I know MBZ does this with AMG and likewise Lexus with "F Sport," but I'd still prefer BMW use the "M" moniker for true "M" vehicles.