This is an update on my flywheel conversion project.  Previous info is in post#42 of this thread.  
The car is back on the road and working smoothly.  The clutch pedal feels exactly right, engagement and disengagement is perfectly smooth with no issues.  There is zero noise, like chatter for example, during idle or any other time.  The starter works perfectly with no issues. My idle is very smooth, perhaps slightly better than it used to be, but that may be my imagination.  So there seems to be no drama and no issues after installation.  
To be clear, I did not do the install, my favorite BMW independent shop handled it.  If there were issues, I would have heard about them.
Now, as far as improvement to the car is concerned, I was not blown away, but it was better, no question.  It is safe to say that my expectations, after many months of preparation and reading other's comments, got a bit too high.  I was expecting a major difference in the speed at which the engine changes revs between shifts, and I was expecting a big change in the feel of acceleration in first and second.  These expectations were wrong.
On my first drive with the new setup, there is no question the car feels lighter and livelier accelerating from a stop.  So the improvement is obvious, just not as big as I was hoping.  I expected to have to relearn how to drive due to the light flywheel spinning down much faster between shifts, but its not like that.  Sure, it spins down noticeably faster, but not dramatically so, and adapting to it was so easy that it happened subconsciously with no effort at all.  Some posters have described the change as "waking up" the car.  Yes, that is a good description.  But it doesn't "transform" the car.
I notice that I can re-engage the clutch on up-shifts just a bit quicker as the rev-matching happens just a bit quicker.  That is a definite grin generator.
So, my advice to those E30-M42/318is owners who want to go to a lighter flywheel...don't be afraid of using a 13.5 lb M20 flywheel (along with the M20 clutch plate and disk) as this weight is clearly fine for street use.  So much so that I wonder why they didn't fit this sort of thing in the factory those many years ago.