Very true & I agree with all of that but keep in mind the 4th gen T4R still has a distinct 4wd drive advantage. And now that the 2010 4Runner is out, I think the Pathfinder is a real option for buyers who prefer a V8 engine and a center differential, which is not possible on the 4Runner any more. nearly identical 4wd system to our 4Runners. Now that I think about it, the only midsize SUV that I can think of that offers V8 and straight-axle rear is the Jeep Commander, and of course it is on the way out. Other than the IRS in the Pathfinder, it is pretty much the same thing as a 4th gen 4Runner. I wonder if any of the guys that MUST have a V8 will switch over to Nissan. Both vehicles could be in 4lo (locked) and all 8wheels would spin with the faint clank of brakes in the background. If you hooked both vehicles bumper-to-bumper and pulled they would be very similar. In '07 if your checkbook was fat enough and you didn't mind IRS you could get a beast of a Pathy that had the 5.6L Endurance V8. Skid control and an auto-4hi mode were missing unless you got the most pricey models and even then side-airbags were virtually impossible to get.
I liked the more spacious interior of the Pathy. That's one of several reasons I have a 4Runner. It's the full-time/awd/auto-4wd mode that the Pathy lacks until you get into the Limited. For him that's 4hi, for us it equates to 4hi locked. So he's right, he can 'lock' the transfer case to provide a 50/50 (F to R) torque distribution. As for the lockable center diff: IIRC Pathy's have straight part-time 4wd until you get to the Limited trim level.