I bought mine two years ago after testing both the 328i and the A4 at a lexus promotional event the year before. While the Beemer might be a slightly (and I do mean slightly) better car, I liked that the Lexus cost me about 7 grand less, fully loaded (including the limited slip differential).
It's a great car that handles impressively in good weather. I have found it, however, to be somewhat unpredictable in bad weather. The traction control fights with the limited slip in the snow, and the standard 16" wheels with the all season radials seem to lose traction unpredictably in the rain, requiring some cautious driving in poor conditions.
As for looks, I know a lot of women, and they are always very impressed with the car, even, as recenlty, when one didn't know what kind of car it was.
Having moved up from a real muscle car ('89 firebird, 305 V8), this car is good entry into a more refined driver. And I don't know what I'd do without the heated seats :P