i dont know about the high-iso performance of the 40D personnally. But i stepped up from a xsi to a used 5D classic and wow. to me it was definitely worth the upgrade. comming from an xsi i think the images of a 5D@3200iso are more usable than the ones of the xsi@1600iso. i know, that this does not exactly answer to your question. but considering that two months ago, when i purchased the used 5D, it was just 300$ more expensive than the 40D they had in the same shop, the higher price was defenitely worth every penny. Since i didn't have any ef-s lenses at that time the move was done w.o. any hesitations.
Note: A lot of poeple consider the high-iso performance of the 40D similar to the one of the 5D classic (which i don't believe yet. i would have to compare it myself). what is sure, comming from a xsi, the high-iso performance of a 40D is certainly a bit of an upgrade. if you are happy with the pictures of the xsi@1600iso, you will certainly be very hapy with the ones of a 40D@1600iso.