The best replacement for e46 m3 is 335i.

The best alternatives to e46 m3 are rated as following:
★★★★★  335i
★★★★  e39 m5
★★★★  e92 m3
★★★  135i
★★★  s2000
★★  e36 m3
★  e90 m3
★  e92
★  e92 335i
★  e90 335i
★  e60 m5
★  350z
★  cayman s
★  z4m
★  335
  b5 s4
  335i coupe
  996
  m5
  e36
  b7 rs4
  e90
  b6 s4
  993
  1m
  c5 corvette
  z3m coupe
  e92 335

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e46 m3
335i
e39 m5