Okay, I see there. I forgot that the previous 330i had 255 BHP, not 230 BHP. That is kinda disappointing that they didn't keep the old 330i around, I quite liked it, and it would have made sense in the lineup. Or at least I think so...
The problem with keeping the old 330i around was that it would have played havoc with the pricing structure.
The entry level 3 desperately needed a power boost. At $32k to start, it was dog meat in the G35 and IS350's crosshairs. The move to 230hp does two things: a) allows it not to look downright silly when car is cross shopped with competitors similarly priced and b) allows MY2006 330i owners to retain some sense of dignity (not to mention resale value.. BMW North America cares about this too, since it leases LOTS of cars). You should have heard the crying and moaning when E90 330i drivers heard about the 335i/328i. I mean people were talking lawsuits. No joke.
The 335i needed to be introduced with a minimal price increase. Let's face it; the 3 series was looking very overpriced and underpowered in MY2006. A $50,000 3 series that didn't wear an "M" badge wasn't going to fly no matter how good it was. Thus, the 335i sedan wears a very reasonable base MSRP of $38k. For this price, it includes a lot of standard goodies like power seats, Logic7 premium sound and Xenon headlights.
So a MY2007 330i slotted between the 305hp 335i and 230hp 328i would simply be counter productive. It would be priced at around $35k and the 20hp difference between the 330i and 328i would make both models seem redundant to each other and make buying a 3 series unnessessarily complicated.
I think BMW made a good move with the 2007 cars. I would like to see them pull a Porsche and slowly bump up the 328i's power over time to keep it competitive by MY2010, it should be making 250ish. There's no reason the basic engine can't produce up to 275hp with refinements over the years.
Meanwhile, the 335 can be easily retuned for 340hp, 360hp, whatever the market ends up wanting.
As an aside, the 535i will completely reinvigorate 5-series sales. I would get one if I didn't really, really want an M Coupe.
Anway, back to the topic at hand. The new C-class will completely destroy the 3-series, be the best thing since bratworst, lederhosen and David Hasslehoff, blah, blah, blah. I heard it even cures herpes. Really.
M