Too much on the sticker for many people who would like one, but it's competitive with a fully loaded Audi Q5, which is their target competition. Remember that price tag includes a bit more gimmicky stuff than the Audi, though I think the Audi's still a better choice unless you have a strong affinity for Volvo as many of us do. Also, my Volvo dealer is a lot more willing to budge on price than my Audi dealer is (as long as its not built to order), and a comparably equipped Volvo tends to be considerably cheaper after negotiations and loyalty discounts.
Regardless, the pictures I've seen of the R-design package don't impress me enough, and I don't really plan on driving any XC60 I buy like a sports car anyway. I'd prefer comfortable and relaxed handling for this vehicle, not something rigid and sporty.