As a former owner of a 2004 Vibe, I can tell you that the cost-cutting in the current model is evident throughout. In fact, I was so disappointed that I ruled it off as a replacement when the lease on my 2004 model was up.
For example, the rear hatch glass no longer opens seperately, a feature which was actually very useful for long 2x4's. The fabric and plastic quality in the interior was clearly inferior than the first-generation model, and for safety considerations, the rear hatch base now has a "lip", which makes it difficult to slide heavy objects in and out. The roof bars and the fog lights are no longer standard options. The front passenger seat on the base model no longer fold forward all the way down, as it did in the first generation, unless you pay for it as an option. This was a veryuseful feature for loading long objects, or as a temporary platform for the laptop when working on the road (not while moving of course).
In fact, the only noticeable improvement I saw was the inclusion of standard Stablitrak and ABS, both of which were options on the earlier model. There are now also standard side airbags, which were also not available in the first generation Canadian models (oddly, it was always available as an option on the US models).
In sum, very little mechanical improvement, but considerably downgrade in terms of quality of the trim bits and other features.
I think for my money, I'll look at an Impreza.
