I just drove an AWD Denali. It drove OK although it feels a lot heavier than my '01. I was leaning toward the AWD so I didn't bother with the 2WD, but after reading some comments here I guess I should have.
I didn't know the AWD didn't have rack & pinion, that's definently a plus for 2WD.
The only time I'd probably need AWD in the rain is when I'm driving like a 16yo which as a 40yo I shouldn't be doing anyway
I tried close to full throttle on a left turn from a stop sign the AWD gripped well. I couldn't feel traction control, it just seemed to grip well. While my truck would have been sideways doing the same thing, I think my truck feels better. Maybe it's the 1000 extra pounds that the Denali has.
As for the Toyota, mechanically it's pretty good (except for maybe the no limited slip), but the exterior and interior design really turns me off.
I'd prefer a Chevy with the 6.0 engine with active fuel management AND the 6 speed transmission, but it sounds like that won't be available for a year or two.