chip and intake combined have been proven to do nothing on E46's (M52's at least). there was a 328i in Euro Car mag with chip, intake, and AA exhaust, and was dynoed after the installation of each mod, including stock.
first came the AA exhaust which bumped a 328i from 175.4hp to 185.4hp, next came chip and intake and they didnt even register on the dyno, and the car remained at 185.4hp.
as for the feel, 10hp should feel like the car has better response and a slightly larger powerband, but it may not pull much harder