One of our sources has some interesting insight into the next generation 2001 Jeep Cherokee (KJ).

The new KJ has had poor consumer test market styling reviews. It is small in size, about the size of a Honda CRV (almost the size of the Dakar auto show concept). This vehicle is very close to the concept drawing that you show on your link). The vehicle will have a standard V-6 engine (although all the test subjects asked for the 4.0L I-6), and it will feature a rear swing-out door (not the popular liftgate)

The smaller size of the KJ will provide greater differentiation in the Jeep lineup. Consumers will be less interested in cross shopping the Cherokee and Grand Cherokee. If they continue to price the KJ on the Cherokee price level, you will definitely feel like you are getting a smaller vehicle for more money.

I personally feel that this model is leaning towards the "softer side" of Jeep owners, the Jeep wannabe's who think it would be neat to have something that looks like a rugged Wrangler, but who will never take if off road.