After spending lots of time in my friends JLUR 4XE, he and I both came to the conclusion that it's really a jack of all trades but master of none. On one hand it got reasonable mileage with the 4XE, it was quiet, it had two rows, and it had enough power. It was also pretty capable off-road in stock form. On the other hand, it was problematic as hell (always in the shop), too small to be a really good family car (he's got three kids and that back seat just isn't very big), not particularly as comfortable to drive as something with IFS, etc. In addition, they're far overpriced for what they are.
To your point though, most people who would have purchased a Wrangler are realizing there are better options out there that do it a lot better than the Wrangler.
It would be cool if Jeep wanted to compete with Mahindra (or similar) and start making bare bones 2-door models with the avid off-roader in mind again. Sure, it isn't a huge market compared to SUVs and crossovers, but the fanbase is there.
