I look at this way, if the CTS is not competitive with the E Class, A6 and 5 Series, it wouldn't matter if it sold for $40k, I still wouldn't by it. As it is the V-Sport is fully ten grand cheaper (13%) than a similarly equipped/performing Mercedes. How much cheaper should it be?
Funny thing is that I'm not even a Cadillac fan, I just think they did a good (or better) job with the CTS.