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If I had to make a choice between 2.5 and 3.0, I'd probably go for the newest 2.5 I could afford. They'll get a tad better MPG and they have adequate get up and go. The 4 cylinder Drive-E kind of piques my interest, but they are still pretty new which means more expensive and less reliability data.
I think Mrs. AlanS deserves heated seats.
I don't get all the trim level designations either. It's ridiculous. I would just look for whatever car gives you the level of bells and whistles you desire.
It's interesting, but I guess it's because used S60's are so plentiful, but it looks to me like you can get a lot more bang for the buck purchasing an S60 compared to an S40.
Good luck!
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