Similar to B-body terms, that may make the 1998 E38 the ideal year. You get the facelift and none of the 1999+ emissions BS that just adds complexity and zero performance. This also avoids single VANOS, but I have found absolutely nothing on this. Still think it might just be wrong.
I agree the current specs on the Camaro at 20 to 30K might not matter, but the STS and BMW are at pretty much the same price point, so whether or not BMW built the car to compete with the 2006 STS, shoppers looking for performance and luxury should look at both. I guess I am just saying 8 to 10K can get you a lot more performance than this BMW. Maybe not that size and luxury though.
Regardless of my GM bias, I have to say that for even money, there's no way I would prefer a Northstar STS over a 750iL. Now, would I take the Northstar over the 740i (non-extended)? That is a very different question. I think I probably would go to the STS over a "pedestrian" 740i. I'm not getting the mac daddy E38 (long, or V12) at that point.
It really comes down to the V12, which I am fascinated with. It's cool from the moment you turn the key. No, it's cool just to look at. I realize the numbers are no better than a 2005 STS w/ Northstar (well the M73 still has more torque - 361 lb-ft) and that's ok.