In my experience with Pilots, Explorers, Pathfinders, and their shoppers, the Highlander hits a special sweet spot of being better looking than the Pilot (more dad friendly), more reliable than the Explorer, and more premium than the Pathfinder, so it's had a unique part of the market carved out. The Highlander has also snagged a number of premium shoppers I know when in the Hybrid, Limited and Platinum trims. This new Highlander should maintain that position very well.
I think the Telluride and Palisade are well executed vehicles that have done a good job of upsetting the class... this will better the Highlander long term. I can easily sympathize with someone wanting a Telluride because I see the appeal, but it does not appeal to me personally.. it strikes me like a Korean Escalade for some reason. Palisade, from an aesthetic perspective, is a disaster IMO.
On paper, GR is still a good engine for the Highlander and I don't see much reason to change. I will say though that when you put your foot on the floor for passing power, an engine that has to spool up high into the RPM range isn't ideal when you're lugging 4,500lbs + people + stuff. I have wondered if a robust turbocharged 4 cylinder might add more usable torque for some drivers.
