//m badges are the badge of cars built by M Division and since the m-sport version is purely a marketing name for a specific level of trim then it is not a M-car and therefore the //m badge is wrong - like putting a GTi badge on a 1400cc Golf.
But because BMW screw customers for around an extra £2k for the m-sport model and give them very little actual added value for their money, they stick little m badges on the wheels and steering wheel to make them think they have a M-car.
As for engine badge deletion, whilst some think it makes for cleaner lines I am sure that the majority do it to hide the smallness of their engine. The only reason I can think that it is mainly 318 owners who do it is so that they can honestly say "two litre" when asked the engine size.
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