The T5's also have pleanty of low grunt but they have increased
turbo lag so it can take a bit longer to reach full torque. I know
on the 98 engines the T5 High Pressure Turbo engine actually made
more torque at all speeds then the LPT engine of the same year (but
that was only once full boost was reached; something that takes a bit
longer in the HPT engine). My 98 S70T5 can easily spin the tires from
a standing start (so it has more grunt then traction) and at 2nd (and
sometimes 3rd) gear shifts the tires can also be spun should you
wish to do so (you learn to modulate the throttle).
Note that I have a manual transmission. My T5 pulls hard all the way
to the point where I back off; say 90 mph, where it is still pulling
strong. The engine itself does not pull much after about 6000 RPM
(time to shift).

The T5s probably do feel faster since the power "hits" harder. On my
98 its like a toggle switch has been thrown doubling the power. I think
newer cars have a smoother power delivery (a good thing) and may not have
the same "edgy" side to them so the difference may not be as noticible.

The most recent LPT engines (like you have) have about as much torque
as the high pressure turbos in the 850s (221 lb ft in the 850 HPT vs.
about 210 lb/ft in the latest LPT models). I'm very impressed with the
power levels from the latest LPT engines. If I purchased a new Volvo
I'd probably go with the LPT engine models and skip the T5 (or T6).

By the way, the smaller displacement is so the T5 engine can have thicker
cylinder walls to handle the additional heat load. The 03 models seem
to have done away with this since I see the T5/T6 engines are now a bit
larger in displacement.