The electric M3W has been tried- how far did that go? The M3W started off as a economic form of transportation but became famous as a sporting car. In this guise it was an exposed motorcycle engine machine that was loud, shook and was fun to drive. For the next M3W to be a success it will need to be nostalgic, loud, shake and have an exposed motorcycle engine out front. These are the magic ingredients. It also needs to be reasonably priced, reliable and easy to work on.
Using the new BMW 1800 motorcycle engine and drivetrain looks perfect to me. The engine is beautiful and comes with the clutch and transmission and it shakes!. An extended driveshaft to their own rear drive wheel would eliminate many current problems. This would leave the chassis and body to Morgan their forte.