From what I have heard, the X-type is not a bad car...IMO its problem is the competition...
In canada a base X-Type costs $47,000
A base 328Xi is $43,000, A4 Quattro is $42,000, Lexus IS250 AWD is $42,000 even a Mercedes C280 with 4matic is $900 cheaper than the Jaguar. Personally speaking, I would rather have any of those cars over the Jaguar.
They are all about the same size on the inside, granted, the jaguar comes with alot of standard kit, something the Germans are not known for...