Replacing my '94 325i

Thanks to an old lady in double-knit, lime-colored pants, it looks like my
325i has met with an early demise. It seems that old people in double knit
have not mastered left turns when other cars are approaching, this seems
strange since they have had so much practice. At first glance, it looks like
my car should have survived, but the body shop guy is telling me that he
thinks the insruance company is going to total it. It's a sad day.

I'm probably going to be getting another BMW, I'm leaning toward the '97
328, or a similar vintage 5 Series.

My trouble is, I know the M50 motor used in my 325 is rock solid, and I
assume the 328 also takes the same motor. The 5 Series gets a V8, that I
have heard is troublesome, and drinks way more gas.

If I was going to be happy with a 328, would I also be happy with a 528 that
gets the same engine? I know the 2.8L motor only has one more horse than my
2.5L, but it has significantly more torque, and the HP comes at a lower RPM.
I'm thinking that the heavier 5 Series with more torque will feel much the
same as my lighter 3 Series with less torque. Is that the right way to look
at this?

In all likelihood, I'll be getting another 3, and probably a 328, either a 4
door or a convertable. When looking at the 5 Series, the discussions around
here lead me to believe that I should get the I6 and stay away from the V8,
is that right?