My sentiments are the same as Brian's ie the 2.88 is the right gear set unless your driving across like Kansas all the time.
And the car should be a good running one too, with an ALDA tweak to get off the initial starting line, valves lashed properly and good injectors, etc.

I'm running a 2.88 in my '83 300Dt and its great! I highly recommend going to a 2.88 in most cases. But, if I had to haul a bunch of people up hill a lot (around here we have some fairly steep hills) I'd probably have kept the 3.07

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'95 E320 Wagon my favorite road car. '99 E300D wolf in sheeps body, '87 300D Sportline suspension, '79 300TD w/ 617.952 engine at 367,750 and counting!