W211 is certainly more comfortable, better seats probably a big part of that, but I find the handling all a bit loose, too much like an aussie station wagon for my liking. Perhaps the E350 station wagon is a little more "wallowy" than the sedan? Don't get me wrong, a midsize family wagon is never going to be anything close to a sports car, but the 530i has the capacity to bring a smile to my face from a driving experience that the E350 never could do. And the sound of the straight 6 just better to my ear than the V6 in the E350.
Totally agree E60 v E61 shape, unless it were for an M5 I don't think I'd go for the sedan.