I test drove both and spent weeks pondering and calculating.
Chose the diesel, and it came out this:

1. "out of the door" price difference was substantial (with the 3,500 credit)
2. Low range torque hard to ignore
3. Did not want to face "beta version" reliability of the 35i. The comparatively old diesel was expected to be more reliable.
4. Expected the diesel to have better resale
5. Planned to buy obtain a boat at some point, expected 35d to excell in towing.
6. Better in-town and highway MPG a plus (even with 25cent/gal price difference, still saved money. Although it sounds funny when talking about 60K vehicle).
7. Deep down, wanted to try owning a diesel, and conditions were perfect to buy it.