My buddy had his 04 4th gen with the V8 on the trail. For light trail riding, it is super nice. The Traction control worked seamlessly. Coupled with a set of new (stock size) AT tires, it was a beast on a trail everyone said we needed 33s for. Oh and for a vehicle with 230k on the clock, it was in very nice shape.
Looking at my schedule, I'm planning a few more trips before the end of the year. I'm thinking I'll take the plunge on a new set of tires as I don't think I'll be switching vehicles between now and then. Also there is an opportunity to use my personal vehicles more for work soon. So if I start using the 4Runner for those trips, then the $$$ make a bit more sense.