My TE has a 3" lift and 33" tires. I can go anywhere my friends Rubicon can go except where a winch is needed
As for off-road capability, the TE has a rear locker and ATRAC that pretty well match the front and rear lockers of the Rubicon. The TE also has other traction aids that work better on pavement. Once I put a winch on my TE there won't be anywhere the Jeeps can go that I can't.
I doubt that your modified TE can go anywhere a Rubicon can off-road. Your friend's Rubi has 4" lift...right there, that is leagues over your lifted 4runner in clearances! Not even close. If i get a winch for my Subaru Outback, i can go anywhere too...but that does not mean that i will look pretty doing it!

A lifted Rubicon vs. a lifted 4runner...the Rubicon will win everytime in off-roading, given equal driver, winch or no winch.
As for traction, TE's rear locker + front ATRAC is a very good combination...but for off-roading (e.g. rock crawling, mudding, etc.), you can't compare it to a pair of solid axles with strong-as-ox lockers in each pumpkin...in both traction power and durability!
Remember, the current Wrangler (JK) has all traction technologies that 4runner has ON-ROAD. Yes, it has VSC (stability control). Yes, it has traction control.
For on-road, it is clear that the Wrangler sucks when compared to traditional SUVs. In addition, crash test scores for the Wrangler have not been great...esp for rear passengers (no airbag protection at all). So, if OP has a family, then 4runner is the ONLY choice b/w the two. (Also, the rear seat angle on the Wrangler is too upright to be comfy for long trips.)
I'm always fascinated by the price on the Jeep. Crude interior, bouncy street ride, wind noise and probably the highest profit vehicle for Chrysler at the manufacturing end.
You certainly can't question the Jeeps off road capability but a T4R Trail Edition and Rubicon are going to be close in price but light years apart in comfort and technology but not THAT far apart in off road capability. Plus the 4R tows 5,000 vs 3,500 for the Jeep. Unless you buy the 4 door Jeep, it's close to being a 2 seater since the back seat on the 2 door is a torture chamber to get into and sit in for a trip of any length. Assuming similar pricing, I don't get the Jeep
I wonder who makes more profit...good statement. The same argument can be said about Xterra vs. 4runner...do you really get over $10k in refinement in a 4runner over Xterra??
What technology does the 4runner have that is light years ahead of Wrangler (JK)??? I would argue that the Wrangler Rubicon (JK) has expensive hardware that is absent on 4runner (4:1 TC with tremendous crawl ratio, lockers, specially-made BFG MT, specially-made Dana axles, strong frame with minimal protrusion down low, etc.).
Actually, if the Rubicon is in the right hands, then the difference b/w a stock Rubicon and a stock 4runner Trail (also in right hands) is quite significant in both capability and durability.
another thing to consider is : reliability!!! (and prices of parts) pls let me know what you thinking about the 4runner the jeep and xterra
also...i ust sold my 04 4runner 1 thing i really didnt like is the driver hight and view is it any better in the 5th gen????
Reliability will favor 4runner...but if you take it off-road, then all goes out the window. Parts for the Jeep will definitely be cheaper...and easier found since aftermarket support for Wrangler is second to none. You can find more places to fix your Wrangler.
For me, if you can afford a 4runner Trail, then get it over Xterra. For YOUR intended purpose, 4runner Trail is the one to get. Remember, if you have family, then 4runner is the ONLY choice!
I was in the same boat as you with one exception: I was considering the rubicon wrangler unlimited 4dr vs the trail edition 4runner. Jeep is more fun off road to me bc I can take the top and the doors off...I loved the looks too. Jeep offers the new JK in some really cool colors too..check out "crush" and gecko and commander green- The new engine in the '12 Jk has plenty of power too AND it is offered in a MANUAL-almost sealed the deal for me.....the trail edition had more room and had a better ride on the road, but not by much. The new JK interior are nice-I like the TE because the towing is better and there is more room and it won't leak when I wash it
check them both out. if you do decide on the jeep, Go for the Rubicon if you can swing it...4:10 gears are good when you decide you want bigger tires. If you go with a Sport or sahara make sure you get the towing package which has the 373 gears...DONT get the 321 gear ratio...sucks when you decide to go bigger on the tires.
Agree 100%.