I had a 740, now have a 2001 S60 and a 1998 V70, both non-turbos. I like the S60 best. With IPD heavy duty rear endlinks, the handling is much improved. Yes, the rear seat is tight because Volvo sacrificed function to form, but the front seat comfort is superb.

I am ambivalent about the V70 (my wife's car) as it has an automatic and understeers more than I would like, but the driveline is superb and it has notably more useful passenger space, despite being narrower and having a shorter wheelbase.

I don't consider the S60 less reliable. Yes, it is more sophisticated electronically, but the mechanical bits are just as easy to work on as on the older cars.

I am not convinced that Volvos are becoming less reliable. Just stay away from the top of the line models, since for some strange reason they have always been the most problematic. 260, 760, S80 - all known as problem cars, and I can't understand why.