I've had both. Ride and handling of a Gen 2 is so much better it isn't funny. If you don't off-road then a Gen 2 is the way to go. Downsides, the bed is slipperier and marks up easier (I got a bed mat), upholstery seems to wear quickly, and there are similar front wheel bearing issues. Had one replaced last year and now the other is making noise @ 56k miles. DEEP snow is kinda iffy because the traction control will kick in and kill the motor. Turn it off and now you've got two open axles, not as good as a limited-slip rear with no traction control. Upsides, rear diff cover has a drain plug so you can easily change it yourself, a trailer hitch is included. Lots of cupholders and lighter plugs inside, rear heat and A/C vents, hardwired input plug for iPods, XM, or whatever.
On balance the pros far outweigh the cons.