With that much power going to the rear wheels, it's a sin not to have LSD standard. Even Infiniti G35's have them.
A one second gap to me is not that big of a deal. Burn me if you will for this, but most really serious enthusiast will not go for a C63 as a track car. There are many other options.... the C63 is still a great fast cruiser although the comfort has suffered a bit (which I guess totally contradicts my point).
Were the gaps between the C55 and M3 1 seconds? If not, then it's an improvement
The E46 M3 and C55 were tested head to head (same day, same drivers) on a track only twice, as far as I know, so these are the best data that I know of.
1) Evo magazine 1.8 mile Bedford Autodrome: 1.29,8 minutes vs 1.30,1 minutes (0.3 second differece)
2) Cars in Action magazine (in S. Africa): 2.0 km Zwartkops Raceway (very short and very tight): 1.17,8 minutes vs 1.18,0 minutes (0.2 second difference)
If you look at the Sport Auto Supertests where the same pro driver (Mr. HVS) drove the cars, but on different days:
Nurburgring: 8.22 minutes vs 8.22 minutes (0 difference)
Hockenheim: 1.17,6 minutes vs 1.18,6 minutes (1 second difference)
Note that the fastest E46 M3 time on Hockeheim (1.16,3 minutes) achieved by Sport Auto was not conducted as part of a Supertest, so it was a different driver, so I don't really consider that as much of a good comparsion to the time achieved by the Supertest's Mr. HVS.
Not many people appreciate the fact that the C55 could hang with a E46 M3 on a twisty track despite no LSD, thinner tires, and with better ride comfort on everyday roads. The problem was the C55's strength as a good road car was its undoing when compared to the involving and rewarding driving experience the raw M3 delivered. The C55 was MB/AMG's best handling car with their "old forumla". Now they're trying a more sport oriented forumula with better steering feel, much tighter suspension, more involving drive with the C63. The problem is it hasn't translated yet into a good match for the E92/90 M3's pace around a track, despite its new found "rawness".
Regardless, track times matter to those who track their cars and those who want some objective measurement of how fast the car can go when pushed on a twisty course. They mean little on the streets, which is why the C63 still will likely be the better performer on everyday streets.