Eh, I'm torn. I've driven the new Xterra, and it has a cavernous interior and much more powerful engine (without FI) compared to the old model. But I agree that the styling isn't as edgy as it once was. The interior is chintzy in either generation, and I was especially bummed to learn that factory navi wasn't an option on any model (all the way up through 2008!). I think the just did a minor body/interior update, but it looks like more of the same to me. Hopefully the next upgrade will strike a better balance and offer more options.
In the end I turned down a newer Xterra and Wrangler Unlimited for the VX and have never look back!