Still not up to Audi standards. But then again, even Audi interiors are not as good as they were in the B5.
(Yes, I am still pining for my '98 A4.)
I test drove the '07 G35 and I loved it. No manual/AWD combo was what convinced me to stay with the Audi family. But since you're shopping auto trannys, then that's not a concern for you.
Although the two cars play in the same field, they are totally different. So you really need to ask yourself what you're looking for in a car.
Since I bought my '06 my wife and I bought a house. And I really wish I had gotten a wagon instead of a sedan -- would be helpful for all those trips to Home Depot. That said, I probably should have kept my '98 as my "fun" car, and gotten something more utilitarian as a second car.
-- P.
New car: 2006 B7 A4 2.0TQMS, Prem, Tech, OceanBlue
Sold:
1998.5 B5 A4 1.8T Quattro Sport

Sept. 11, 2001 -- We will not forget.
UrA4 -- 1998.5 1.8tqms
GIAC 1 bar, APR exhaust, Turbo5 BPV, Neuspeed shifter, OEM Sport springs, Bilstein Sport shocks, AWE-DTS
AWE VDO Nightvision Boost gauge, Euro projectors, Philips HID, Alpine V12 MRV-F357, DLS Sub, Focal 130K
Oettinger RE 17x8, Toyo T1-R 225/45-17, ECS Tuning Stage II Brakes