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the 04' is still a 986 so it will feel very similar interior wise. Depending on options the 04 may have some nicer materials on the dash and seats, 3 spoke wheel, no yellow lights on the outside and yes feel faster.
on the 05' it still has the 3.2L motor just like the 04. Newer styling, if i were going to jump up to a 987 i would look for 07+ models with the 3.4L motor to really feel the difference but that is just me.
When i bought my 97' i drove several 986 S's to see what i wanted. Ultimately the base car was most of the fun of the S and for the deal i got on my car a similar S model would have been double the price and it wasn't double the fun. With that said you need to drive both the 986 and 987 cars and decide for yourself if it's worth the extra money. Surprisingly i see some really good deals on 987 S with low mileage so the price delta may not actually be all that much. Not sure i really helped with your question but hopefully there is some good info for you here.
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