if only talking about the end result, and daily driving, i think its the most ideal swap! the 2002tii is already quick, and has effortless power no matter how steep a hill is, in fact thanks to worthless pirelli tires i could do burnouts going 50mph in 4th gear :eek: but the 1.8 (with mechanical fuel injection) isn't the smoothest engine in the world and i'm not sure about the numbers but is probably rated at 30hp less than the m42 when brand new. considering how light a 2002 is, with an m42 it'll be a fly machine but still balanced unlike the deathtrap it is when equipped with an s14.
like any old car, they aren't really that safe, especially when most people either get a european chrome bumper or take the front bumper completely off. when mine was totaled, the massive US bumper with a 5mph spring had about as much effect as throwing your hands up in front of your face when you're about to be run over. because of the age rust is a huge problem, and while mine had visible (but minimal rust), the structural integrity was compromised, to say the least!!
my point is, people over do it sometimes. m3 parts are so expensive, you could probably build 3 m42 powered 2002's for that price and they would be great daily drivers, if not race cars. that's my opinion.