M5eater,
The VW GTI and Audi B5 are not comparable to the CTS-V, or even the upcoming ATS-V. You know why the tuner kids love those cars? Cheap speed, that's why. The B5 is 11-16 years old. Of course Cadillac doesn't have a comparable street scene -- the only thing it had then was the Catera. Also consider that Audi now is more upmarket than it was then. A new ATS-V with the LT1 would gather its own devoted following -- yes, overlapping with the rest of the Chevy smallblock marques, as if that's a bad thing. Of course the Caddy's following will be smaller and more well-heeled, not unlike the first-gen CTS-V following was... and over time, as the cars go second-hand and third-hand, it'll go from aspirational to affordable for the young turks who make street scenes vibrant and interesting. It doesn't need a blown V6 to do that.
Indeed, you seem to make this point yourself later, indicating the relative dearth of M3s in places "past road-racing and grocery getting." That's what happens when you go beyond the $50K mark -- fewer cars, and fewer of them knitted together in garage-mechanic crazy maniac communities. They exist (for Cadillac too), just not so thick as cars that younger guys with fewer obligations build up.
As for the supposed lack of individuality in the Chevy smallblock world, you need to get out more. First there's the fact that the Chevy smallblock is the go-to transplant engine. Visit YouTube and type in LS1 and see what you get. Next, consider how many different ways the Chevy smallblock can be tweaked. If you're not making 1000hp you're a nobody?? That's an elitist attitude; maybe you get that if you hang out with hardcore tuners with deep pockets, but come on, that's hardly the only experience out there. Most of us respect our fellow gearheads wherever they are on the tuning scale. Now it is true, if you want to be a big fish it's easier in a small pond, but fame is fleeting, and fun is more easily shared.
As for Cadillac's desire for exclusive powertrains, what can't be ignored is that the three products that brought Cadillac back from the dead are all powered by Chevy smallblocks -- Escalade, CTS-V 1, and CTS-V 2. When Cadillac insisted on having its own engine it didn't do as well: witness STS-V, XLR and XLR-V, and their last V6 turbo, the one-and-done 2.8L in the SRX.
I'm not saying the LF3 won't be successful under the hood of Cadillacs, but GM should beware choosing a less-powerful and less-proven engine for a performance halo car. No one will question the performance cred of a Cadillac with a Corvette engine.
Of course, GM Powertrain has been doing great things lately -- would it be too ironic to say they're firing on all cylinders? -- and a TTV6 ATS-V would be fun to drive and make the boost-nut 1% positively giddy. It just seems like an unnecessary risk on a product that cannot afford to come up short.
.Jinx