Apparently you missed the press statement last year where BMW said that the American economy can't support the 1 series the way europe can. In layman's terms, because of the exchange rate and production costs, the 1 series in europe actually ARE cheaper than the 3 series. but to build and sell the exact same cars in the US, the cars would cost the same as the US 3 series.
so they brought it here, but they can't make a profit by offering the same lineups as they do in europe. Frankly, we should feel lucky that they brought it to the US at all, considering that their margins are so low, its a bad business deal on paper.
And on the engine thing, they picked those two engines because the VAST MAJORITY of their target demographic in the US will buy those two engines. Sorry, but they care about making money more than they do about making sure every single BMW owner is happy with the offerings of a car they may or may not buy anyways.
And you're wrong with your numbers. 128i is rated at 230 and the the 135i is rated at 300 HP. Personally, I think the 135i is powerful enough, and torquey enough to kill yourself with (a couple times over) and its nothing to complain about.
For the 135i Coupe, acceleration from 0-62 mph is accomplished in 5.3 seconds and top speed is electronically limited to 155 mph.
2006 BMW M3 0-60 mph Acceleration 5.1 s
We're definitely talking M3 numbers with an intake and exhaust..... Bigger turbos and a retune =