I fully support advice to flush tranny. I use Amsoil but Mobil 1 Synthetic is fine too.
For the power steering, Volvo uses (initial fill), and sells, a special synthetic fluid which is greenish in color. If you're in doubt, hang a small magnet in the fluid reservoir, and see how much steel dust it pulls out. I hung a magnet with a hole from the cap spring for a week using nylon cord. Installed filter/magnet combo (from IPD) in the return line to the reservior after doing this test.

Almost everyone here would recommend a transmission flush as part
of the regular service. It made a big difference on our 1995 855 GLT.
Volvo corp. is trying to get the lowest level of service they can specify
because it brings down the total cost of ownership for the vehicle
(which some consumer agencies compare when rating cars). Its not
uncommon for a dealers service schedule to vary somewhat from the
schedule listed in the manual.

Thermostats typically fail around 70K miles. Many people replace them at
that time as part of the 70K service. In addition to our 1995 855 we
also have a 98 S70 in the garage. Both had thermostat failure around
70K miles.

I'm not sure about the power steering fluid issue.

Overall, I'd say the dealer advice you are getting is pretty good.

I have a 98 V70 and did the flush two weeks ago. I bought the ipd flush kit and used mobil 1 ATF. It was so easy, don't pay to have it done. do it yourself unless you can't operate a screw driver. I can totally tell the differance in the shifting and the fluid was in need of changing. This should be considered normal maintance, you didn't buy a lemon.

Although it's not in writing, VCNA service reps and instructors tell dealer techs and service writers that the fluid should be changed and a simple drain and fill still leaves many old quarts of ATF in the trans SO a flush is best.
The term "life" of any car part is going to be determined by several things BUT the only thing that ANY car manufacturer cares about is getting any part past warranty. They don't care what happens after that and they'd really prefer that you just trade the car in and buy another new car. That's how they make money.

even though volvo does not recommend changing the ATF, its highly advisable to do so, like every 25K miles to prolong the life of your transmission.

Think about it, lubricants degrade with heat and time, that's why we change the motor oil every 3 to 5K miles. The same goes for the the transmission and the power steering.

These are easy do it yourself projects, if you're so inclined.
--
'98 v70 GLT John, Tampa Bay

v 70 trans, should be drained and filled (approx 3.5 quarts) every 20k. also should be power flushed periodically.
dont worry about p/s fluid unless its really bad and it isnt at 38k.