Ah, a conversation I can contribute to ...
I am the owner of one of these babies, so I can tell you my thoughts after owning "Bronson" for about a month and a half.
First off, I was not wooed by this car's stylings from the git-go ... I, like some of you, preferred the look of its predecessor, the Cheroke Sport. It's grown on me, though, and the subtle differences between the 2004 and 2005 models make a sharp difference in its overall appearance. Mine is the Limited Ed which means it has a nice chrome grille, chrome side strips and a chrome roof rack. It does not have those bulky, black bumpers. The front bumper on all the Libertys now is less protrusive than the 2004 model, making it far less clunky. The interior is nice, although more cushy than is needed. Like all "SUVs," it is designed to appeal to yuppies who will never drive it near a forest, let alone through one. That said, "too cushy" isn't something that's really going to turn me off from a car purchase, assuming it is still capable of being bullish.
As for the stuff that counts (performance, et al):
1) Mileage ... seems to be a big concern for many here (me too), so I'll start with this. Consumer Reports must have had a lepruchan clinging to the side of the vehicle siphoning the fuel out of the tank as it drove. I couldn't get 11 mpg from this car is I drove it like a maniac. Maybe if I did 0-60s over and over and over through the whole tank. I have done three tanks on this so far. The first I did not measure, the second I got about 20-22 mpg, over half of it city driving (granted, it's a suburb-type city, so not as stop-n-go as say, NYC). The last tank I haven't checked yet, but definately got over 400 miles on the tank (which I believe was about 18 gallons). Will report back later. I suspect I could get 27-28 mpg out of this car if I do it right, esp. if a lot of it is highway cruising.
2) Performance ... this car is very peppy. It drives a lot like my sister's Jetta TDI, only you can definately feel its weight ... so I guess you could say it drives like a slightly tubby Jetta TDI. It isn't nearly as smooth as the OM603 ... but really ... I don't expect that from a truckish vehicle. It cruises easily at 80; I have not driven it much faster than that. It accelerates easily, although a little more "jolty" off the line than I like (I have the same complaint about the Jetta).
3) Sound/smell/smoke ... The engine is rather quiet, although definately a diesel. It isn't as burbly as the Jetta, as rumbly as the 603 or a clattery as the 617 ... it sounds like a mini-truck (i.e., a very muted version of my dad's Freightliner cab). It really whirs when you accelerate, and I like that. You can tell it's a diesel, but not enough that it "announces itself" upon arrival. Of course, again, I like my old 603 sound better. You'll notice this theme, though ... I like the 603 better than pretty much everything except life itself. No smell, no smoke, although my keen sense of smell can detect its dieselness and I get to enjoy the diesel aroma when filling up at the pump, not that nausiating gas scent. I did smoke someone at a stop sign yesterday when I had to NAIL IT to avoid getting greased by a tanker truck on I80. Other than that, no smoke. Again, I would expect that from any diesel these days.
4) Off-road capability: In my somewhat cushioned environment, I haven't exactly brused this baby up. But it has been fun to drive over a couple curbs, uneven grassy areas and rough roads (lots of those around here). I haven't even used the 4W drive yet, but it's still a fairly tough little car. It's no sissy vehicle, despite the image Jeep seems to be going for with it.
5) Tracking: It tracks easily ... at 80 mph you can relax and drive with one hand ... it doesn't drag you around the highway like some other mid or large sizr cars I've driven.
6) Things I don't like: too many gadgets. Me being my weird self ... I don't like all the buttons and "conveniences." But I'm not going to lie. The radio controls on the steering wheel have been well-used by my impatient little fingers and are a great way for me to never stay on one station for more than 10 seconds. ... the transfer case is situated in an awkward position in front of the gas pedal and it really juts into the area of the driver's feet. This has been difficult to adjust to, but I hardly notice it anymore. bad thing #3: It isn't a G-Class.

That's what I dreamed of, but hey, sometimes you just have to settle. MB is uglifying the GClass from what I've heard, anyway.
5) To sum up things I like, which I mentioned before: fun to drive, not bad looking, nice sound, comfortable ride, tracks easily, handy off road as far as my purposes go.
A few other comments ... I am distrubed by the number of dingbat chicks that drive Libertys. It is especially troubling for me because I am a WOMAN myself, so I know people look at me and think "oh, there goes another dumb woman in a Liberty." Well, I'm a diesel diehard and am no typical college ditz (those of you who met me can attest to that). I have driven an 87 diesel GMB Suburban so you know I'm not married to "cuteness" when it comes to cars. The Liberty is a very capable car, just as capable as the Cherokee was. It just doesn't have that butch "college guy" look anymore. BTW ... the Cherokee was a chick car, too ... believe me, TONS of my friends drove those suckers. Just go to any college campus and you'll see tons of them, all lined up with Yankee Candle Co. air fresheners hanging from the rear view (that's THE sign that it's a girl's car). The only difference is that now Jeep has designed the vehicle to look the part of the chick car better.
And let's face it ... Mercedes are now designed to appeal to yuppies, Land Cruisers are designed to appeal to soccer moms, Bentleys are designed to appeal to rap stars and so on and so on. The whole car industry has lost much of its posterity and practicality. At least such is the case in the U.S.
I should ad that despite the fact that I see my car's clone 200 times a day, I do take some pride in the fact that I have not seen ONE SINGLE CRD anywhere other than in my driveway and in my dad's driveway (he has the same car, just in white). As much as I want diesel to catch on, I'd hate to see bozos driving the same car I do.