Calling DA40 entry level prime?!? That's a first time
I wouldn't consider it as such but your mileage may varry.
DA35/2.4 is entry level. Cheap (although still decent) build, optics based off FA35, it uses AL element, has fewer aperture plades and is half stop faster.
DA40/2.8 is a niche lens. As you'd expect from Ltd lens it has excellent build, all metal (for some that's advantage, for some disadvantage), it has 9 aperture blades and as such I'd expect it to have smoother OOF when stopped down, and I'd expect it to last longer than the new DA35.
IQ wise (from what I've seen so far) you can pretty much toss a coin to decide...