the 350's tranny/shifter isn't the greatest, the S2k while cool isn't really a practical DD for most.

I wouldn't suggest another BMW, or an Audi for that matter... VW is also out... I'd be looking in the direction of a WRX or Legacy with the manual transmission. both are fantastic on gas, and if you can get either with the 6-speed (spec. b 06+ or STi) you'll be golden.