I said "true to Prado form", not the dimensions are equal to a Prado

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Fair enough, but they are 100% targeted at different kinds of drivers. Folks who buy a Hybrid Highlander buy it as a reliable family hauler that happens to get awesome MPG and retain it's resale value. That's why we have ours over something like a CX-9 or Ascent. I strongly pushed my wife to get a end-of-the-line 2023 GX460, which would have been <$10K more, but she insisted on the Highlander as she doesn't like the driving dynamics of my GX (objectively, the Highlander handles far better in normal driving and is more car-like).
That is not at all the target demographic of the new LC - it will still have the truck/SUV like driving dynamics and will still be 8 mpg short of a Highlander (which is better than the 16 mpg short of a GX460). It'll still have the big compromises for inside space inherit with a BOF, solid axle vehicle, relative to a unibody crossover. Suburban moms don't like any of those things.
I also personally think the EV mode will be great for slow-speed crawling and provide better control/low-end torque. The more I think about it the more I like the idea of a hybrid off-roader for things like MPG/range and being able to run more electric accessories. But that doesn't change how much I love my 16 year-old GX with a modified V8, and I have zero intention of getting rid of it.