My 98 3.2L pulled 220 to 224 rwhp (it was wavy up top, timing or fuel issue up there) stock* (*non-OEM air filter, car was used and might have had ECU altered but retained ALL stock parts including intake, exhaust etc) at 55k miles. Car now belongs to a buddy so we can still dyno it against our current IT cars, although it was dynoed on the same dyno we use for our IT cars - a Dynojet. J
eff had a 3.2 in his M Coupe as well that was quite strong. I'm sure Ed would drag my old M3 over to the dyno to run against our IT cars if someone thinks those numbers are off. Frankly, I didn't buy it either, but after talking with other late M3 owners it is uncommon, but not unheard of - as Jeff mentioned they can turn 210-220 at the wheels. Maybe Gunter's engine building varied a lot from day to day.
The 95 3L always enjoyed a perference, particularily in the day before OBD-II was understood, but now that it is understood I see no reason to prefer that motor over the 3.2. Either can be tuned well.
As far as the board and results go I've found numbers as high as 228 rwhp with a "stock" motor - that is, filter and timing.
With respect to the M3 in ITR I started out thinking it would be one of the mainstays of the class. But, when it became apparent that certain other cars had to fit in ITR it became a hard sell. With it went the V8s (Porsche 928 and Mustang) as well. Personall I think once people see what the developed Z, Supra, 330i, , and Lexus IS300 put down then these cars might come back into the class - V8s too.