Damn you, I was going to request the magical seats and you beat me to it!

Now the serious answer. I'm sure Nissan took into account the space between the front seats and the back seats when folded down. Remember too that the new Xterra has more legroom in the rear seat area, which means more room for the seats to fold too. Infact, I believe that's the reason the seats don't fold in the current model...there's nowhere for them to fold to! Oh yeah, there's more legroom up front too!