I wouldn't be able to live with myself in a "family sedan with a good engine". Oh wait, I've got one already! Where I live you can't spit without hitting a new Altima, Maxima, new Bimmer 3 or 5 series,or a bug-eyed WRX .
For the cheaper thrills I would go with a second generation M5 or e30 (square) type 3 series BMW.
The old 3 series was available another great 2.5 liter 6. With a few simple mods you're talking 250hp. They also have a great internet forum.
www.bmwe30.net