Peugeots are certainly becoming more mainstream, as are Renaults. Sales figures certainly point that way - Peugeot is practically guarenteed to beat its 5000 cars target this year.
If you order an auto 307 in silver now, you're looking at September delivery! No surprise there. For Renault, the Scenic is now one of the best (if not the best) selling car in its class (ie. mini MPV). C5s almost seem as common as Xantias, despite being on the market for only a year or so.
The C3 has some potential to change the weirdness factor. I think most Citroen drivers are happy at being special
Back to the Volvos, my parents drive an S70. I love the 5 cylinder engines. I've been in the S/V40, S60, V70 & S80 (T6), and they're all great cars. Maybe the 40s aren't as great, but the S60's great. The S80 T6 has got plenty of grunt. The V70s probably the best wagon in the world, unless you're desperate for snob appeal.
Aussie spec cars aren't as good to drive as the Euro ones it seems, the S60 actually gets reasonable reviews for handling in Europe, whereas its reviews here in regards to handling are a mixed bag. But, it's hard to fault the 5 cylinder engines. The base 2.4 20V is brilliant, for the performance it delivers in such a heavy car, with near amazing fuel economy.
Volvo Car Australia is probably also one of the most professional outfits as well, I know Peugeots not quite there (based on my experiences and some other 307 owners in regards to information).
Peugeots are more fun in the chassis department, but Volvo beats them in the engine department. I suppose that's why they were the first to dump the PRV V6

What worries me is that (from what I read with the 307 - I don't have much experience with previous models), Peugeot's chassis work seems to be going backwards, whilst Volvo's improving (I'm sure Ford Europe is an asset for them).
Some of the Pug engines are getting better though. Peugeot just needs to know how to screw a car better together. Slam a door on a S60, then do so on any French car, you'll see what I mean.
Volvo's are still decent value for money, more so for the middle range cars. Peugeot's great as well, but I suppose you don't get the same level of quality or refinement in finer points of design. You pay less though, which is fair enough.
I'm still new to Pugs, I've been a Volvo person for most of my life (got all the "apple boxes" taunts back in primary school

. I think the Volvo's in the dependable part of me. The Pug's for that other fun part

Either way, they're both thinking persons' cars.
Cheers,
Justin