I've never driven a 996 or 997 but if they are similar to my 986 (I think the 996 is probably exactly the same) regarding the geometry of the seating position to the dash and the windscreen, and generally the cockpit ergonomics, I totally get what you're on about. While I've driven a few cars that push this aspect even further (the S2000 cockpit feels like wearing a helmet), the early watercooled P-cars I think nail the coziness/usability perfectly.
(I've also never driven an air-cooled Porsche, but they appear to have similar cockpit characteristics, only more spartan and a little less overtly inviting).