I think all BMW's are considered "luxury" cars; but there are definitely more lux models. The 3 series is considered an entry level luxury car; whether or not it ranks above a 1 series is subjective, though I believe some of the materials available in the 3 are not available in the 1, just as some of the items in the 7 are not available on any "lower" models..
Out of all the cars I've owned, my 335 is my favorite, and I consider it the most luxurious based on fit, finish, materials, driving dynamics, technology, and looks.
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21 G05 > 20 G05 > 17 G30 > 14 F30 > 08 E90
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