I've owned a gen 3, an 04 for several months. It was stolen, and I replaced it with a Gen 2.5, only because from experience, the Gen 2 suits my needs better.
My observations are:
Pluses:
Ride is excellent
3rd row seat folds flat in the floor
Engine and trans are top notch (3.8 / 5 speed auto)
Interior is high quality
Killer stereo
Minuses:
Any real lift is $$$
Exterior styling is "not boxy..."
Sunroof is moved forward of Gen 1 & 2. Kid's didn't like it
So, if your not building a rock crawler, and your kids never had a Gen 1 or 2 with the sunroof, your good to go <img src="/forums/images/graemlins/lol.gif" alt="" />