I'm like you, still have stable of 240's. But my daughter just moved far away and I "guided" her to buy herself a new Volvo (because I won't be around to cope with a used car's problems). She bought a 2007 S60 2.5T. She could have bought a leftover '06 for a few hundred less, but I really encouraged her to buy the '07 (and she can easily afford it) because:

The '07 models, compared to left-over '06s, have:
1) The anti-skid stability system standard on all, instead of as a hard-to-find and expensive option on the '06s (it's described as DSTC on the '06 brochure).
2) Low tire pressure warning system is standard on all cars (rather than only on the run-flat option package on the '06 models, described as TPMS).
These two items, especially the first, were the things that most concerned me that she should have (for her safety).

But there are other changes/improvements as well:
The '07s have stiffened spring rates and firmer antisway bars, for better, flatter handling! Also, the '07 models have turn signals built into the mirrors, and other trim improvements. If you want to wait awhile for delivery, you can also factory order *active* bi-xenon headlights (they steer into the turn, rather than remain fixed ahead).

The 2.4 light pressure turbo has more torque earlier than the T5, so that 0-60 is compareable. The 2.4T isn't as finnicky with octane, but still wants 89 octane for the best milage.
The T5 might have sport suspension, which wives tipically dislike. Every bump and tar strip will be felt, especially in the rear seats. If the T5 has the "sport" option, I would suggest she buy the 2.4T

Klaus
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(V♂LV♂s 1995 854T, 1998 V70R)

In my zip code, Carsdirect.com has the T5 offered at $6308 under the list price (and you may be able to do better than that) so unless that T5 is equipped with absolutely every option known to mankind and then some, you still might want to shop around.

-BTC

Both cars are excellent and you won't go wrong with either. I personally would go for the T5 but I like the extra boost, but you may not need or want it. The 2.4T will probably get a smidgen better gas mileage but will have a little less power, but still plenty!
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1998 S70 T5 Emarald Green Metallic (125K), 2004 V70 2.5T Ruby Red (45K), Previous Owner of Black '94 850 Turbo Wagon (Sold at 140K and miss her). My cars have been running so well lately they've got me worried.