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Every BMW platform has it's weak points and part of that selection should involve what type of "racing" you want to do. HPDE, time attack, wheel-to-wheel, etc. Once those are addressed you have to ask yourself which you enjoy driving more and fits into your budget or class best.
The 1 series platform never came with a limited slip differential from factory (except 1M), is heavy, cannot fit much wheel nor tire up front, requires some brake upgrades). Plenty of information on the forums here on how to approach upgrading your car.
The E46 platform has a much broader knowledge base given it's age and extensive use at all levels of racing. Can leverage a lot of the SpecE46 playbook to address weak points (subframe), etc. and likely to encounter an E46 at every track event you attend.
To each their own. Having raced or tracked a dedicated E46 330XiT (lemons), 1999 Miata, and Z4M coupe, I am now building an E36 M3 for long-term track use. I found the E36 m3 to be the sweet spot of engagement (old school chassis, MT, LSD, hydraulic steering) and still a heavily supported aftermarket. I do not really care about being competitive or having a full field to compete against.
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