As they say, it's usually more fun to drive a slow car fast, than a fast car slow.
As long as you don't have much expectations for straight line dominance (my car is a highway queen, so I appreciate the heft and power of the 335) then you could have a lot of fun throwing a 320i into the corners. And the ability to coax some easy power out of it with a tune isn't bad either.
My biggest gripe with the 320 (or the 3 series in general) is at the low end, you really don't get much for your money for a "luxury" car. You don't get the luxuries you'd find in any of the Japanese competitors for the same price, and you don't get the power you'd expect from a performance side, just the knowledge of "German engineering". I'm sure it's still going to be a huge volume seller for BMW though because the majority of people who aren't enthusiasts are going to say "I want a BMW and don't have a lot of money, that one will do".
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Current: '20 X5, '18 M3 ZCP
Previous: '11 E90 335i, '11 E90 M3, '16 VW GTI, '15 M235i, '13 335i, '08 TL-S, '00 Corvette
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