Hey...I'm all for doing cool stuff! Just make sure that it works for your set up.
My thoughts on making exhausts larger without making any other changes to the motor leads to not enough back pressure and loss of performance. Just adding a muffler changes the tone and overall sound but I don't think that it adds performance without other changes. You could look at the entire system as a whole from the AFM or MAF to the muffler and find out where your restriction is before you change just one thing. A muffler isn't going to change much but it definitely sounds better. As for the side exhaust, you could actually turn it to exit on the passenger side instead because it can get loud and you're now limited on space because you just cut a bunch of space off from shortening the system to fit either the cat or resonator and muffler to baffle the sound.
I personally run MAP (manifold absolute pressure) from my ITB's with 6mm valves, ported head, slightly larger header and a complete 2 pipe E30M3 exhaust with a SuperSprint muffler. Its quiet and sounds good. No droning anywhere in the rev band. I also have a stroker motor that can produce the extra flow.
I say talk to someone about how your motor is set up and then make a decision from there.
Just for informational purposes, the 2 pipe system is most often used for ground clearance and no other reason. You can easily run a single pipe and get the same performance depending on modifications.
Rohan is correct as well, the x-pipe in the M3 system has a lot to do with the flow and pressure. IF you remove that piece from the system then the car loses a ton of torque. It's been proven. Flow is very important but so is back pressure. And prior to the x-pipe there is another H-pipe in the header for flow and resonance as well where the O2 sensor is placed.
HTH....
Cheers,
~Ralph