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The reason that most MB folks will discourage you from "speeding up" a 300E is the economics of it.
It just doesn't make any sense when there is already a much faster W124 sedan pre-built by MB, and available for an upgrade price considerably less than opening up your 103 engine and uprating the chassis components.
Look at this way:
Take a 1992 300E. Sells in my parts for about $20K. To get 250hp or more is gonna take some serious work. Probably $10K at least, more with brakes and suspension upgrades. So, now you're into your 1992 300E for $30K.
A 1992 400E can be had for about $25K. It's already over 250hp and has the chassis to match. To make it blistering fast, maybe take the $5K and add a new final drive ratio and performance wheels/tires.
The kicker? Car value. Remember your 1992 300E worth $20K? Even with $10K additional into it, you'll be lucky to get your $20K value back out of it, as highly modified cars sell poorly. So, you've spent $30,000 and have an asset worth $20,000 tops.
Take the 400E, lightly modify it, and it will probably hold it's $25K value. Wheels and tires might add, might not. Keep the OE wheels in case. You've spent $30K and have an asset worth at least $25K.
And for me, the real deal is speed/dollar. With a 400E sporting a 3.07 rear gear, you've got a car that's approaching/at 500E performance levels. Take the 300E and add $10K into it, and you'll be lucky to get 400E performance, much less 500E level.
Same money, more speed. Yah.
AMG owners have a different problem. They have no cheap and easy car upgrade. If you own an E55, you can't trade up to an E74 for $5K. If they could, I GUARANTEE no one would even consider modifying their E55.
And hey, it's your car. do what ever you want. Just don't whine and complain when things get complicated trying to build a 300hp car from a well-engineered 177hp one.
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