I had a 4.08 in my 280SL. I feel that the experienced owners and restorers who counseled me against buying a Pagoda with that rear end ratio were right to do so, but the rest of the car was pretty much what I wanted. So what to go to for the back axle ratio? Using the 4.08 ratio as a starting point for the math, I found that the 3.27 gave a ~20% reduction in revs, the 3.69 was very close to 10% lower than the 4.08 and the 3.46 fell right in the Goldilocks middle with an approximate 15% reduction in revs across the board. Mine is a standard shift car and I too feel that the 3.46 is ideal for it. I could have fun with the 3.69 but they seem to've been vacuumed up by previous generations of Pagoda owners, and they're still a bit short-legged for highway cruising. I imagine that the 3.27 is especially nice in an automatic Pagoda with modification to give first-gear starts. I also speculate that it sounds and feels particularly right to those whose youthful automotive experiences were with/in V8s.