The problem with a 25-06 is that its a long action cartridge that preforms best with a full 24 inch barrel....Most .270s come with a factory 22 inch barrel, a 25-06 will usually have a 24 inch barrel...If you don't mind carrying a longer gun than can be had in .270, and one that has less energy than a .270 then a 25-07 is a good choice...

If you reload, a 25-06 is an excellent choice, but around here, you have to really look for factory loadings and they aren't really that impressive...Out to 3-400 yards, you won't find much difference in ballistics of factory loaded cartridges between a 25-06 and a .270, if you stick with a 130 deer bullet for a .270 and a 115-120 deer bullet in the 25-06....and frankly most hunters will never shoot a deer at 400 yards....

All that being said, if you are talking about shooting a 3-4 boxes of shells a year at coyotes or prairie dogs, a .270 or even a 7mm-08 would make more sense than a 25-06....

If you are talking about shooting more than 3-4 boxes of shells a year at varmits and not hunting anything larger than deer, you might be better served with a .243...Take a look at the Winchester Supreme 55 grain Ballistic tip at 3910fps and the Federal Premium 85gr Sierra HPBT at 3320 fps....the 55 grain would work as a varmit round, while the 85 gr is good for deer and coyotes both....

And that's what's "wrong" with the 25-06....It sits between 2 of the most popular cartridges ever created...the .243 and the .270....Now throw in the 7mm-08 that came out in 1980, and is gaining popularity every year, you can see that there just isn't much market left for the 25-06...