I reviewed your pics . . t-stat housing corrosion is totally normal . . these have to be made from the cheapest aluminum . ..
water pump debris, a bit of rust
Coolant was green Prestone, perfectly compatible with the era of these engines.
The coolant drain plug on the block is at the very bottom of the coolant jacket, which is at the bottom of the cylinder bores. A bit of sediment in the bottom of the water jackets will likely not effect cooling capcity on a stock engine used on the street.
I suggest you try to create a drain flow path out the plug opening , not disturb what is in the block and run it.
Note that BMW coolants today are blue, and formulated for their new family of engines, which have all sorts of lightweight alloys in the cooling system.
That's also why it is so expensive . . . An older m30 has no exotic metals in the cooling system, so refill with distilled water to a 40% coolant and water mixture, top it off with a bottle of Redline Water Wetter. The later breaks the surface tension of bubbles on a boiling surface, which is the top of the combustion chamber. This aids in heat transfer by increasing the amount of water contacting the hot surface.
drive it and enjoy . .
Mario L.