For some unknown reason I thought the system had changed in the second gen Highlander away from the 50:50 AWD system used in the first gen.
The hybrid uses a unique slip/grip, otherwise the Gen II Highlander's AWD system operates exactly as the Gen I. The 3.5L 270hp engine is MUCH sweeter, with way more power AND better fuel economy.
Agreed, I've driven a friends Lexus RX350 and that is a pretty sweet engine. I had the Gen 1 Highlander and found the 50:50 AWD system to be a very good set-up.
Sounds like the Gen 2 is the best of both worlds.