Toyota has done pretty poorly in new product development recently in the BOF models. A meaningful segment of buyers are expecting successive generations of products from Toyota to get worse than the outgoing model. And arguably for good reason. The 4th gen 4Runner had better powertrain options than the 5th gen. Let's not forget that Toyota actually tried to sell a 4800lb suv with a 157hp 4cyl. And that wasn't very long ago. The Tacoma powertrain arguably got worse from Gen 2 to 3. The new Tundra I think improved in a lot of ways, but also took steps back in others - smaller cabin, smaller bed, but longer body overall, no tow hooks, etc. The Sequoia got significantly worse in job number 1 for the class - cargo space.
Yes the 4Runner sells okay if you compare to past years sales. It's now incrementally more than it was 20 years ago. So that's good. But it's doing very poorly compared to its closest competitors over the last decade. It's not the bright spot Toyota fans think it is. Over the past 20 years, Jeep GC sales went from 205k to 265k. Wrangler went from 70k to 205k. 4Runner went from 110k to 140k. A modern 4Runner should be selling around 200k consistent with its closest competitor on both sides. And it's reasonable to think that a modernized family wagon SUV and offroad SUV should combine for 300K+. If we add in the GX and LX, it still doesn't get to 200k. Toyota could sell a lot more with a modern powertrain. And Toyota could have done that a long time ago. Even just an 8AT would have helped significantly. Painting the door handles black and recycling the "trail" name again isn't good enough. And obviously the LC200 sold so poorly that it was discontinued - IMO that's entirely the result of overpricing and overpackaging.
For a new model, everyone wants something different. Some of us would love a LC40 remake. Some would love a LC300. And some would prefer an LC70. I think there's a market for any of those options that would generate significant incremental new sales and revenue. OTOH - I don't think an LC70 style body dropped on a 4Runner that's the same size will move the needle. Especially with a 4cyl powertrain. Will a few sell? Sure. Will it draw new customers to Toyota? - I'd say no. I don't see it working very well unless it offers something materially different.
I hope I'm wrong on this and the new LC is something that's not just a 70 series styling on a 4Runner with 31" dunlop tires for $60k. We'll find out in a few months.