My car is fine with downshifts... I just tightened the kickdown cable as much as I could. That, and if I want to shift from 4th to 3rd I just turn off Overdrive.
To help you in your choice, just go 3 inch so if you plan to go turbo you'll be fine. Supposedly 3 inch is better high end than 2.5 inch, but 2.5 inch gives you better low-mid range. I have a 2.5 inch exhaust with magnaflow muffler and high flo cat and it's pretty loud, but it's your call. Only...
One of the more common causes of a340e's failing is heat, so get a transmission cooler if you're going to have a lot of power on it.
Note: The A340E on the turbo is different from the N/A. (# of clutch packs)
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