The Liberty is the Cherokee elsewhere and stock for stock the Liberty is a much better 4x4 then the Cherokee. I own both a Cherokee 92 and a Liberty 08 and the liberty is light years ahead of the xj. If you want hardcore get a wrangler, if you want a daily that can handle bad roads and weather get something like this. Seven slot grill and ground clearance, i'm good.
Almost literally. Comparing an older Cherokee to a newer Liberty is like comparing apples to pears. Personally, I'd take the XJ, but I'm biased. There is just something about a nice big square Jeep that appeals to me. The new round curvy Cherokee is nice, but you just can't replace a classic.