Thanks DJ.
Yes the E36 can run in either class, it just depends on the motor (there are different minimum weights associated with each swap and each chassis, but they are minor differences).
The white car is maxed (and competitive) except for the cage and the motor. Aero work is not totally up to par but it's fine to start with. Both classes allow the same modifications, just have different motor starting points. To swap between classes would be a matter of plugging in a different motor, so no decision is final.
The performance disparity really is minimal. It's only horsepower and it's a 30-40whp difference so those lap times would make sense. Last time at WGI I did a 2:13.1, so I'm already close. I'm currently 180lbs heavier than either class, with less grip (corded/cording RA1s), and less hp (10whp less than JP and ~50whp less than IP). So lap time for lap time I'm in the running to be competitive. Does my thought process add up? Sticker set of R6s, less weight, and more power = .5-3 seconds at WGI?
re: Bruce and the 328: the best part about the E36 is that so many people track them, every setup has been tested and proven so you know what works and what doesnt without pouring money into your own R&D. Motors are cheap, parts are cheap. They are also extremely easy to drive fast, which could be a blessing or a curse. Anytime I do a lap in another car, it takes a lot of babysitting to keep it at 10/10ths compared to my car. It's easy to run fast laps but that doesnt necessarily make for a better driver.
Also, one con I didnt mention, JP would put me in the 'engine swap' group for COMSCC and every other time trial, which I would be no where near as fast. Not a huge deal, but would bum me out. IP however would put me in SPA again and I'd be mucho faster than I was at Tremblant. Possibly getting a rematch with Mr. Price's 911 is a good reason to stay IP.

Cars are fun.