Welcome to FlyerTalk and great first post!
However, when compared to the 35k no annual fee, you're essentially paying 1.78 cents for the extra 5k at that point. Not worth it IMHO.
Good job finding a higher offer though, maybe applying for the 35k no fee and asking to be matched to 40k may work?
Will ask the SO to try as she'll be getting her card soon.