And the development costs were very high as well. I'm not sure they made a huge profit (if any there). It was - "we can do it" project. Which didn't affect sales in any manner. Nor did change the perception of BMW brand.
As said: BMW already has sporty image. Brands like Lexus, Jaguar, Audi, Infinit, Alfa Romeo are still in the process of getting there - therefore so many sporty cars in their portfolios.
And BMW are reacting: seeing the market is getting crowded, and they start to reposition the brand a bit - since ... if sticking with old formulas - some brand might overtake BMW in "old" sporty image.
As said many times: IRL BMW brand is many times considered TOO sporty for many customers. Therefore they are avoiding it - rather choosing MB or Lexus etc. But BMW can not afford staying too sporty - but also targeting MB & Lexus customers. Since BMW are now too big to offer niche core models - core models now have to cater to mainstream, while new niche models (X6, 5rg GT etc) will cater to specific tastes.
Times are changing. BMW are not the only sporty premium brand in the sky. There is a competition. A new choices. So, be happy.
Don't expect - eg. since Evo drives more similar than original M3 - than the current M3 - that BMW will go back in time, and replicate M3. No. If you like the original M3 feeling - you can ether buy a used old M3, or eg. an Evo.
Same case for 335i vs S4 - you can either go for 335i with Performance parts & Power kit - or chose Audi. Since BMW do not have direct standard rival for S4. Etc.