Because I have had some experience with Toyotas, I went with the XB. For a toaster on wheels it is not that bad. The 08 has the rounded corners, didnt like the square styling. I heard some issues about heavy oil consumption. What I do is put a honey oil additive in the engine to prevent a lot of these problems. At 70K, still running like a champ. I think most people dont think about the additives to the tranny and eng which definitely make the difference. My wife loves it and coming off an American car binge my whole life, I dont mind the plasticky feel of the Scion. My wife had a PT Cruiser, or should I say PT Loser @19MPG average and now is happy with the XB @24MPG.
I like the roomy feel, large hatchback for cargo, the toyota engine with VVT-i, Pioneer system standard, along with all the other options that come standard. Also, I live in Arizona and during the real hot periods 114+, it is nice to have freezing cold AC. The corolla I had also had good AC on it especially after I well insulated the refr lines. For a small engine, to have a good AC like this ups my rating on comfort. I do also like the gauges in the middle. The steering wheel usually gets in the way of the gauges. This way I only need to move my eyes to the right instead trying to see over or under the wheel.
Center console needs redesign. Transmission and engine would have worked well for small car but seems a little hesitant to move XB, maybe up the tranny to CVT or ECT-i 5 speed Auto. Just carry over improvements made to Toyota Matrix.