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MZ4 Coupe pros: Stiffer chassis, more power, shorter wheel-base (better rotation), better limited slip diff (variable from full open to full lock, unlike E36 M3's static ratio), better rear suspension design, accommodate wider wheels and tires front and back, 6 speed, better head-room for helmet clearance. Bigger and better brakes (bigger caliper, pads, and floating rotors).
Cons: You HAVE TO RUN WHAT YOU BRUNG. Meaning there's no way to carry an extra set of track tires and rims unless you go ballah and add a custom tow-hitch. Trunk is big enough to carry maybe a duffel bag full of clothes for a weekend and a small assortment of tools. Clearance to the side of the head is limited and it's much harder to get in and out. Solutions for mounting in-car camera more limited (must use suction-cup on rear hatch instead of popular clamp mounts on head-rest). Can't take more than 1 passenger for e-ticket ride.
I think that just about covers it. If you plan on a "full on" track car, with cages and coil-overs and intake and exhaust and whatever you want to throw on the car that would meet rules for the particular class you run in, an E36 M3 is still a better choice because it's cheaper, more parts available, and the fact that it's easier to get a cage in the car would pretty much preclude the MZ4 Coupe.
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