If the M235i is quicker around a track than the 1M (
source), is there any reason why BMW would rush or consider a M2? If M235i will be quicker than the 1M, in my eyes it's already a successor to the 1M without the badge. Maybe someone can remember, but I don't recall any next gen car besting the a M car from the previous generation. IIRC, the E92 335i was 4 seconds slower than the E46 M3 around the Nurburgring.
The way I see this is for those waiting for a M2, this news is a bummer but if you're looking for a performer similar to the 1M, the M235i works at a lower price tag and no limited-production.