I bought the S40 just as I was finishing college...it's a great car and I am very happy with it. I went from a Toyota 4Runner(which I LOVE...if I could have both I would) and do not feel like I have lost much space. It looks and drives great and accelerates beautifully. Being 6'1" I need to put my chair relatively far back, limiting the space behind my chair. Therefore, if someone is sitting behind me, there is very little space. That's my only issue.
The console...I love the space behind it. And the very comfortable seats.
I think it would be great if the back windows went all the way down and a little extra leg room in the back seat would be fantastic.