Right...the NA1 I drove had like 175K+ miles on it and wasn't exactly in mint condition. Plus, I didn't really rev as hard as I would like and push it to its limits. Plus, like you said some inexpensive mods, relatively speaking, would probably make it much quicker. But, I did find the NA2 to be noticeably faster--could have been biased by knowing it had a bigger engine. Or perhaps being post-02 it had the mythical/alleged R tuning.
As for Rochester potholes, they are pretty bad. Luckily, I live outside of the city. But after living on South Beach and driving, I've been accustomed to potholes of all shapes and varieties and have learned that lowering a car is not an option for me.
BTW, Smurf Blue aka LSB rules. Best color ever on BMWs, IMHO.
damn.... why did you move from south beach to crochfester?