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1) There is only one BMW which won more racing titles than any other car in history of BMW.
BMW E30 M3
Racing improves the breed and if you use that as a measuring stick then choice is clear. It is the car after all other M cars were modeled after. It is the M car with highest resale value. It is easily and by far the best BMW ever made. It is a winner and champion.
2) It has been said that the most balanced and practical BMW of all time in terms of price/utility/performance/weigh distribution/gas mileage is
BMW E39 530i.
It is the quintessential BMW that will not break the bank. It is very good at literally everything, but excellent at nothing. Being average at everything at a lot of things is evolutionary the most advantageous.
3) Most famous BMW engine. This is easy choice and while V10 is glorious everybody who knows BMWs will realize
S38 I-6 in E34 M5 is essence of what BMW is. Hand built.
4) Above is my opinion based without taking bias into consideration. Being that I am on my 5th E39 M5 you can probably guess my choice for best BMW.
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