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As far as I know the Audi RS range isn't watered down by the S range although the badges are similar. The latter is just given more credit (and of course more sales potential).
Of course an S is just an ersatz of a radical RS, and an ///M335i will be just an ///M3 ersatz, but I don't doubt that the performance and handling (and esthetic) tweaks will be enough to clearly differentiate this new intermediary category, as well from the pure ///M range as from the basic stock models.
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