Most SUV manufacturers focus on the streetability (does that word exist?
) of the car, therefore sacrificing off-road abilities.
Look at the European SUVs such as the Porsche Cayenne, the Mercedes ML or the BMW X5. All afore mentioned cars have pretty good street driving abilities, but waaaaaay less good off-road abilities when compared to an H3.
GM saw that niche and jumped into it, reaching a big market with it.
Having said that I also do not agree with a lack of power for as long as city driving is concerned... On freeways (autobahn here) I would like to see a little more "kick". But I willingly accept the less power for A) better off road abilities on the other hand, plus acceptable fuel economy and (last but not least) the definitely ICONIC design of the H3.
Just my 2 cents.