Ok, short update.
I have driven the car with chip for about 1000 km and I have now better idea of it's effects. Consumption on my 400 km "test track" is practically identical, only 2% increase which can be atributed to set of wheels on trunk or bit heavier use of throttle on motorway. So far so good then.
Power/torque is definitely up on middle revs. I can actually use 4th gear to pass things on the road. Overall car feels bit perkier and willing to rev.
Air con removal netted 15.5 kg weight saving, maybe some 4-5 kg more after I get rid of heat exhanger/blower.
Bought the E36 M42 bottom end with clutch, starter and alternator and started taking it apart this weekend. Interestingly it had solid flywheel, I was under impression that in E36 M42 always had dual mass flywheel.
Took two sets of M42 cams for grinding. 220€ / set to get them similar to Shrick cams, only downside is that it will take about two months before they are ready due queue on machnist shop

Major rethink on my plans. There will be two engines:
Engine 1. (current one on car)
- Shrick copy cams
- Motronic chip optimized for Shrick cams
- lightened flywheel
- 2.5" custom made exhaust + cat
Should be around 165-170 hp when ready. This engine will be put on storage once engine 2 is ready.
Engine 2. (one I am going to build based on acquired bottom end)
- Wössner forged pistons (comp ratio around 12.5)
- bored block to 86 mm
- well balanced crankshaft
- ebay CNC con rods/stock con rods with lightening and shot peening
- S50B30 ITB's
- Mildly modified cylinder head with possible 35 mm intake valves
- Glass/carbon fiber airbox
- Solid valve lifter/follower conversion
- bit stiffer valve springs
- Dbilas, Cat Cams etc cams around 300 degrees duration
- VEMS or Megasquirt engine management
- lightened flywheel from engine 1.
- 2.5" custom made exhaust + cat from engine 1.
Difficult to say about power... Engine should be ok to rev as high as 8500, perhaps even 9000. Honda has similar sized engines and they produce 180 to 240 hp on road trim, altough they have VTEC but on the other hand they do not have ITB's.
I already have most of the parts required by engine 2. but I think it will be one year before it is running...