Project e46

Falkens are actually not bad (no, they not in the same league as F1s et al). Also, yeah - nothing wrong with the wheels themselves, the stretched rubber though? Looks awful. But agree on the suspension front with Clarkey a little extra height wouldn't go amiss.
 
Maybe the same reason BMW stretch the tyres from the factory...
http://s1.aecdn.com/images/news/gal...w-e92-m3-zcp-gets-subtle-changes-at-eas_6.jpg
It makes the car that little more reactive since sidewall flex is all but eliminated.

Also, you can't fit a wide rim like those off a 5er with chunky tyres without fouling the arch. Personally, I'd put the biggest tyre on for the grip and massage the arch until it fits, but each to their own. I'm no fan of the silly stance nonsense where you are making compromises on the geo and tyre width just for looks, but that one is only a mild case.
 
Also, you can't fit a wide rim like those off a 5er with chunky tyres without fouling the arch.

What makes you think they are off a 5er? That would be completely illogical given the work to make them fit made all the more strange by the fact the Style 32 is available in E46 fitment as it was the standard fit wheel on the 328Ci.
 
Same at both sides though, if one side was significantly different I'd be worried - will have a look anyway the rear suspension is easy work
 
Probably just never had any renewal at the back end I reckon (or if it has a good while ago), most I've seen are like this - not really an issue either way tbh.
 
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