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Hi, I have an '04 986S and find it to be all I need. I love the look of both the exterior and interior, but that's a personal preference. I agree that the glass rear window is critical. It seems like a minor issue, but it's not.
The 987 has improvements over the 986. From what I understand there's more light-weight components in the suspension. The seats have the anti-whiplash head rests. The engine has a bit more power, and I'm sure there are other things too.
Will you notice the difference between them? Possibly. But, I think you'll be very happy with a well maintained 986S. If you go for a 986 look into the 2004 550 edition.
Good luck
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