I'm quite disturbed with it because the 120d/320d diesel engine of the same displacement is more powerful (163 vs. 150 hp), quicker, faster and more economical. This alone doesn't do it justice at all. This is a sure sign that BMW's fiercest foe can indeed be itself.
BMW's 2-liter designation is back with a 4-cylinder engine (from a 6-cylinder 2.2-liter), but with less power (170 before). I'm not sure why BMW built this engine with modest power. Being a top performer in most comparisons, I expected them to come up with around 170 hp as well, or perhaps even more. Not only are the new 4-cylinder BMW models rather close in power, but their performance is so much apart from the 6-cylinder variants (the least powerful 325i now has 215 hp).
The bottom line is, what's the point of this engine?
The E81 and E90 use a more powerful and more economic engines as compared to the previous 2L petrol found in the E46. I think BMW Phil didnt bring in the diesel because of market perception that diesels are only good if they're large displacement like the 3L diesel engines found in the x5 and 5er.
If BMW offered the full range of the E90 I expect a large bulk of buyers would opt for a the 320d. It just makes too much sense.
320d (diesel turbo)
Max output (kW/bhp/rpm) 120/163/4000
Max torque (Nm/rpm) 340/2000
320i
Max output (kW/bhp/rpm) 110/150/6200
Max torque (Nm/rpm) 200/3600
325i
Max output (kW/bhp/rpm) 160/218/6500
Max torque (Nm/rpm) 250/2750
330i
Max output (kW/bhp/rpm) 190/258/6600
Max torque (Nm/rpm) 300/2500
It still doesn't do the car justice if a diesel engine with the same displacement is more powerful. If you've read the 320i article, it's hard to justify buying that car over the 320d. I personally don't think people will choose a car with slightly better balance and engine sound over a faster, yet more efficient vehicle.