The best replacement for e36 m3 is e46 m3.

The best alternatives to e36 m3 are rated as following:
★★★★★  e46 m3
★★  e39 m5
★★  s4
★★  e46 330ci
★  e46
★  zhp
★  e39 540i
★  b5 s4
★  rx8
★  540i
  c32 amg
  330ci
  e46 330i
  e30
  e30 m3
  e46 zhp
  e46 330

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e36 m3
e46 m3
e39 m5