go for the 2007.

Aesthetically the 2007 is nicer. it's not obnoxious yellow with giant contrasting decals. The placement of the rack bosses (directly into the seatstays) is cleaner looking.

Functionally, I prefer the threadless setup. The stock threaded headset on the 2005 is pure crap. The cranks look to be the same sugino RDs that are found on lots of other bikes. Probably on par with the Touros, but square taper if that's what you like. The 2007 also looks like it has a nicer saddle and seatpost. The 2005 post is a pig and the saddle is awful.
The wheels are awful regardless of whichever one you choose. I'd definetly redirect some of your carbon-bling money into a decent set of wheels. You've been warned.

Can you tell that the only stock parts left on my KHS are the frame and fork and seatpost binder bolt?