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My buddy has a 535i and it feels quick and is fun. After driving it I decided to buy one and when I went to the dealer to look at options they had a 550i for me to conveniently see the options and drive......bastards.
If money (gas and $200 payment increase) is a major factor then just do the 535i and you will enjoy. Honestly I drove the 528I and it was nice too. Haven't looked at the MPG but I bet its solid.
If you are a "car guy" and occasionally drive aggressively then its a no brainer for me.
It killed me to think I had more HP left under the hood due to software limits so I just got Dinan S2. Its stupid but nothing like HP to put a smile on your face. I would only consider trading HP off for handling.
Hope that helps
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