Hondo, first remember we are talking about a 1996 LT-4 vs. a 2002 BMW M3.....the Vette offered that power rating six years earlier in production. Secondly, the LT-4 was actually underrated by GM intentionally, not to cause any problem with the upcoming (at that time) LS1 , rated at 345 hp. In actuality, the two (LT-4 & LS1) dyno nearly identically on average (except newer, 01/02 LS1's are now a bit stronger , ~10 rwhp). Third , although the BMW six (3.2 L, I think) is rated about the same as the GM V-8 (5.7 L), this does not give you the real world feel for how and where each engine makes its power.
As stated earlier in the thread, the BMW makes its peak power at much higher rpm , because with its much smaller engine displacement , it must rev more to make as much. Because of this , again as has been stated, lower in the rev range it would possitively get stomped by the Vette's larger LT-4. The BMW is a much more efficient design and extracts much more power from its smaller size , but cubic inches (or liters if you prefer) make up the difference for the old pushrod LT-4 .
Both of these cars are actually quite close in a quarter mile sprint , both being stock . Typical LT-4 Vettes weigh around 3350 full of all fluids and dyno around 295-300 rwhp and thus run the 1/4 in approx 13.2-3@107-8mph (all stock on street tires). The new M3' s weigh in around 3450 full of fluids and will run about the same 1/4 mile time and trap speeds indicating it probably dynos in the 300-310+ range.
This indicates that BMW , too , underrates its M3........the BMW has a HUGE gearing advantage which does much to equalize its lack of lower rpm power. The BMW is actually priced almost identically to a new '02 Z06 and that is really a much more fair comparison. It is also one in which the BMW is completely trounced in any type of straightline speed contest (typical 02 Z06's weigh around 3125 and dyno 350-60+rwhp, you can do the math....)
Sorry for the book but hope it helps.......