Jeep Cherokee Sport 2.8 D of Pajero 3.2 GLX

Are you referring to the mid-size Cherokee (not the Grand Cherokee)? Used to own one of these in the US - 3.7L auto Limited model. Very nice to drive with a responsive engine, but seeing as we're about to buy a Pajero here in Oz in a few months, they really are a different class of vehicle space-wise. The Pajero has tons more storage space in the rear. The Cherokee (it's called a Liberty in the US) drives exceptionally well, and has a great turning radius, but we did not do a lot of off-roading in it - just a few climbs/descents on corrugates and ruts, and some light road snow, which it all handled well - from memory it doesn't have the ground clearance of the Paj, but this could just be my perception. If you don't need the luggage space of the Pajero, the Cherokee would be a great vehicle, but with camping gear it easily fills up even for weekend trips, hence our desire for a larger vehicle. A Thule roof boot would certainly extend its capacity.

Haven't driven either vehicle in diesel yet so no advice to offer there I'm afraid, but we're looking for a DiD.

I did this comparison last year. I was looking at a diesel Cherokee 2.8L and the NP Pajero 3.2L.
You cannot do a direct comparison due to the different size of the vehicles but I was potentially interested in a smaller vehicle which could tow my 1600Kg caravan.
I ended up buying the Pajero.
The biggest problem with the Cherokee was the lag between pressing the accelerator and moving off. This was criticised in a couple of reviews as being an engine management problem. Whether that has been fixed in later models I don't know but it was very disconcerting.
I also found it very plasticky in comparison to the Pajero and to get cruise control and other gizmos you had to get the top model which was close to the Pajero price (and without MATT). It was also very noisy in comparison.
I liked the size (only two of us so I could put the rear seat down to increase storage) and it was fun to drive putting the engine lag aside. But that is about it.
Very happy with the Paj. Tows like a dream, great fuel consumption and comfortable.
Rick