I bought my Frontier as a dual-purpose vehicle; a tow rig for my 240SX race car, and off-road toy for mountian trips. As a tow rig the truck is just adequate; the long wheel base (CC/LB) makes it very stable, but the engine is a little underpowered. If I had known they were coming out with a 4L 265-HP version I might have waited to buy my truck. As noted, the gas mileage is pretty poor, but part of that surely stems from the low gearing (4.63:1 rear) needed to compensate for the underpowered engine. OTOH, as an off-road truck it shines. With just a change of tires (M/Ts) the truck turns into a 4-wheeling beast; I can go everywhere my buddy's Jeep Rubicon goes-until the beds starts to drag :)
Stability when towing, rugged, reliable. Great off-road truck (it is the cousin of the Xterra after all).
They've already added more power, so the only other thing I would want would be more interior room; I'm 6'-4" and the back seat is not a place I want to be. The steering wheel needs to tilt up more for us long-legged guys.