BMW M-Series

yes, it is designed that way and completely normal. <--- this is absurd!

No, not necessarily. I don't believe any manufacturer would design an engine to intentionally burn/lose oil. You may need to top off your oil regularly depending on a few factors; 1. the condition of your engine; If your need to top off your oil every few weeks chances are you have put a lot of wear and tear on your engine block. Consider having your piston seals replaced. 2. The type of oil you use; If you drive an M3 I would highly recommend using fully synthetic oil, some more expensive German oils have anti friction technology which makes it even harder to burn and improves overall performance. 3 the way you drive the car; obviously, if you drive for 130+ mph for extended periods of time and are using regular oil, you will definitely generate enough heat to lose some oil... so to answer your question, NO should not have to top off your oil regularly in your e46 M3, unless any of those three conditions apply. Now on that note, you should still check your oil level at least once a month, top it off if nessisary.

Personally I drove an e36 M3 for 10000 miles over 10 months, often at very high speeds for extended periods of time and never had to add a single drop oil. The engine is obviously in near flawless condition and I use Lubro Moly MoS2 Anti Friction 10w40 oil. If your looking for the ultimate engine oil they also make a 0w40 which is endorsed by BMW.

It is normal oil consumption for ANY BMW to burn 1 quart with in 3k miles(conventional or synthetic). Look it up on BMWTIS. 10k on 1 oil change for 10 months could be considered abuse. Conventional oil is 3k miles, synthetic is 6k miles, regardless of these 10k to 12k oils.