Wish I'd seen this thread earlier - interesting views on the xterra. I looked at the Wrangler and for reasons of questionable reliability and not being as comfortable, I chose to go for the pajero 3.8L, LWB. Its a great car, very comfortable and a good daily commuter car too. Drove it in the desert last weekend and it was great.
It was a beginner drive but the Paj handled everything quite easily I thought. I did find the power a bit on the lower side when going up steeper dunes, but I managed to get up to wherever our capable guide @Gaurav took us.
So I'm happy with the choice, but only now considering whether I should get a skid plate for the back at least and maybe front and back.
views welcome !