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If you search "VANOS delete" through E46 M3 forums you will find a lot of information on this.
Probably the only reason to do it on a S54 is to install a turbocharger and run standalone engine management. But even in that case, VANOS delete is questionable.
Keep in mind that the salt and pepper of the S54 engine is the head, and VANOS is the technology which makes possible a nice torque curve over a wide range of RPM. Without VANOS, your S54 would be nothing more than a M50 with extra displacement and slightly better flowing head.
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