Speaking of Liberty...
Before I bought my Xterra, before I drove anything, I was looking for a 4wd small suv that still had decent fuel efficiency. Stats-wise (ground clearence, turning radius, HP, fuel efficiency, etc), the Liberty and the Xterra seemed so close it was rediculous!
But after I drove them both, it was no contest.
The Liberty felt like a cheaper ride. It's hard to explain... it's a visceral thing. Just little things that add up, like letting off the gas and feeling "loseness" in the drivetrain, or the steering feeling too much like compact car's.
On top of that, the Xterra looks muscular (body shape and features) next to the Liberty and has the longer compartment.
I haven't gone offroad with it much though (to get back on topic). I'd really love to mud that baby up.
[edit]BTW, as background, I was test driving '04 Liberties and Xterras when there were still some on the lots after the '05s came out. I say that because, the '05 Xterra's change significantly (though they retained the same general appearence) and got quite a bit more Horsepower. After that, I think most people put the Xterra in more with the Grand Cherokee than they do the Liberty.