Everything runs great after 34000 miles. Smoothest ride in its class (which isn't saying much), although somewhat sluggish in handling and noisy on the highway. Driving position is very awkward if you are tall, although my 5'2" wife loves it. I wish we had the Japanese model in the US. (It has automatic climate control, vehicle stability and ABS standard, etc) Toyota reliability and quality is somewhat overrated. Mine came with dislodged window rubber from the factory. ECU replaced because engine didn't always start due to known factory defect on early 05 production. However, everything else is in excellent shape after 3 years of use, with no sign of wear.
I can get 40 mpg on highway. Lasting build quality - doors still have solid thud. Simple, appeal-to-the-masses interior. Nice bright optitron gauges. Excellent automatic transmission for this class. Rear seats usable even when the front seat is pushed back. Tall headroom.
Most of these were addressed in the 09 model. Telescoping steering wheel. 5 speed automatic. Standard side airbags. Large front pillar impedes visibility when turning. Tall trunk lid impedes rear visibility.