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328i or M3 Sedan?

I'm trying to decide between purchasing a new 328i Sedan with the Sports
Package or an M3 Sedan.  Having never owned a BMW before, I'd like to get as
many opinions as possible about the pros and cons of owning one vs. the
other: for example, why might (or might not) the initial purchase price
differential be "worth it?", what might be the differences in longer-term
(hidden?) costs of ownership?,  etc.  Any and all thoughtful opinions will be
appreciated (e-mail replies gladly accepted).  (BTW, why do you think there
so many relatively new (1-2 year-old) M3s being offered for sale by owners?)