I voted yes, but I am biased of course
Fact of the matter is you would have sold the E46 for a fair bob and E34s are dirt cheap over in Mother England. If the car was maintained well, then there is obviously less things to fix, but even with a more rotten car you can still get it working and running right.
In terms of cost you have one-upped yourself, but I guess most people are seeing how much time you are spending on fixing things and kind of get a bit worried about that. What you said about E46s are right, I'd be too scared to touch one myself (and I'm not very mechanically inclined) in case I break something that costs big $$$$s.
People won't understand how good the E34 is (and how well you have fixed yours) until everything is fixed and nothing is breaking for a little while. Just making sure that it is a clean and "healthy" car will turn heads -- it does for me and I still have a squeaking multibelt.
Good luck with your repairs and start counting the dollars you are saving! And enjoy the E34, they are built like tanks as long as they're well maintained, and it's clear that even if the past history of yours is a little shady, she's going to have sunny days ahead.