When I was out test driving a E46 M3, I went across the street to the Mini building (Mini was on the same auto campus) to test drive the Cooper S for the hell of it. I drove this thing right after the M3 and was not disappointed at all! This car is a blast! I think it's worth every bit the asking price and if I were in the market for a car in this price range, this is what I'd have.
Concerning passenger space.. I'll tell you a funny story. When I first got in the Cooper S, I put the seat back all the way because I'm 6'1". I then realized that I couldn't reach the pedals. This car had more room in it than the BMW M3. Very surprising.
Also.. Everyone seems to talk about the stiff ride. I didn't find it stiff at all. I thought that the 350Z track model was stiff as h*ll, but I don't hear anyone complaining about it. I wonder if these reviewers think for themeselves sometimes or just lift notes from other reviewers.
Sal