The new ML's (post facelift-'02 on) are exponentially better vehicles than their predesessors. That being said, they are still pretty far behind a lot of their rivals. At the risk of being dragged over the coals by some of the members here, I think you could definately find better options. The new Cayennes (despite exterior styling) are great vehicles. They drive like what I thought the ML would drive like when they first came out. I've driven the turbo quite extensively as of late (demo perks) and it does handle more like a performance sedan than a truck. Just one option to consider.

As for the third row seat, it is more of an afterthought and does not function well in the vehicle. They are getting very difficult to find and you will spend a large amount of money retrofitting one to a vehicle (multiple thousands).