Nope, not a deal-breaker at all... It may however, require a slight adjustment of your expectations.
Since I can only tell my story... My decision to get one included a couple of pages of features and specs comparisons written down on paper between my V-8 sedan daily driver and my now prized '02 Montero Limited. Each item got a ranking of 1-10, I tried to be objective on purpose, and was surprised when I added up the columns. The Montero simply crushed my prior favorite limited production model luxury sport sedan. I did the same with my tow rig, a '95 Ford Club Wagon Chateau, 5.8L V-8, factory tow package.
Again the Montero came out on top with the only 2 downsides being losing 90 ft/lbs of torque, and the shorter wheelbase (in regards to towing). Good news is the Limited has the 5-speed select shift with 4.30 gears and weighs less than the van, so I've determined it still wins even with less torque. In every other category, except passenger and cargo room, the Montero again took the edge. I know I have to keep the revs up in the torque band, but the joy of having enough gears to choose from along with the select shift is awesome. As I've gotten to know the Gen 3, I continue to be surprised at how well thought out and mechanically designed it is, (ok, after you deal with the leaking valve covers, valve seals, and cam seals..:snorkel
After driving my Gen 3 as a daily driver, with a fair amount of time on the highway, and playing off road, you'd be hard pressed to convince me that anything else could match the value and performance for the dollar, even keeping in mind we're talking about 15 year-old technology! Since you are a Jeep owner, I would echo the above comments, and argue that the Montero package benefits will have you quickly forgetting your worry about engine power. I love the independent suspension, no it doesn't have the articulation capabilities of the earlier models, but my percentage of time needing that, or heavy towing isn't that high.
At the end of the day, I think it is all about the package, and the "balance, or fitness overall". In my hot rod days, I drove a 340 Dart which I had built and slightly modded the engine and transmission, it "just worked". I loved catching the big block cars snoozing at the starting line, many of them never understood what happened....certainly they had more power and torque, they just couldn't apply it as well as I could with my setup. Come to think of it, I shoot 20 gauge clays in the back field for the same reason over 12 gauge. :elkgrin: If you can handle most of your own maintenance, the Gen 3 Montero Limited is a winner, applies what power and torque it has with great efficiency, and leaves me often grinning like the cat that ate the canary.
A couple of fun stories about the Montero:
http://forum.expeditionportal.com/threads/156349-Cooper-Discoverer-Backing-Down-Elephant-Hill-for-Love?highlight=bill+burke
http://forum.expeditionportal.com/threads/80929-A-backcountry-trip-to-Utah-sells-the-wife-on-overlanding!/page2?highlight=bill+burke
A little Aussie fun with a diesel Pajero, the "camera car" becomes the star. Funny these trucks are nearly worshiped everywhere in the world but here?
[video]https://youtu.be/Kzz19KQNuIQ[/video]
[video]https://youtu.be/3WPsT4p1lE8[/video]