The common misconception of the Corvette.
The current Z06 will outperform an e46 M3 in any measure of performance. It's not your typical American muscle car in that it only goes fast in a straight line, it's an awesome car that gets dissed because of the bad reputation of American cars. I'm not saying the M3 is a bad car, it's an awsome car... but don't under estimate the current Corvette because it doesn't have the snobby branding of a European sports car manufacturer.
Don't know about the Z06, but my Dad has a regular 2000 C6 Vette, he and I have raced, on the straight, and in curves we have switched cars also so we could get a feel for the other... He spend many years working for GM Defense labs, TRW, and Jet Propulsion Labs (JPL), so he was and is extreemly partial to American engineering.
After getting his vette, his only comment was that the M3 is superior in EVERY way, he was really dissapointed.
On the day were were racing each other and we switched cars, I couldn't believe how much of a crap box the vette was... The thing cornered like a school bus.
your STOCK *E36* M3 smoking all those rides left and right on straights? Man that's hard to believe. Must be horrible drivers....
I can't really explain it either. The thing is stupid fast though. I think a great deal of guys that buy really bad ass cars haven't a clue how to drive them.