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I too also have both 2011 M3 and 2013 X3 i28.
My wife and I are starting a family and soon enough I'll be put in that same spot to trade in my M3 for another family-oriented vehicle (also to reduce monthly expense).
I think X3 is a great car for commute and road trip, etc, not to mention the spacious cargo space. In fact, I love having one, but it is no M, and never will be. After months of soul-searching within myself (thinking to trade in the M3 for a X1 or 5 series), my conclusion is that, based on what I already have with the X3, during the weekday commute I won't complain about my next X1 or 535 or whatever it is, but on the weekends I definitely will miss my M3, and the thrill of the M Power throttle. I also know that every M I see on the road from then will make me miss the M3 more than ever...
However, reality is reality, and it's got priorities. Sometimes I even say to myself, "If I were to downgrade from M to a X1 or regular 5 series, I might as well just get a Hyundai or Prius, because the depression definitely will kick in anyway." Well, I think I am more dramatic, but downgrading/stepping back is a b*tch, and always will be one... =)
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