Well, for father's day my wife humored me and agreed to come on a trip to Lake Arrowhead for some 'light' off roading. We ended up on a trail with mostly quadrunners and dirtbikes. We came across a few other vehicles, a tricked out jeep and an Expedition 4X4.
The Highlander with the 4wd-i is no joke off road. Even with the OEM tires it does an INCREDIBLE job at getting up and over deep rutted roads, rocks, off camber trails and even water. We crossed an 18" creek and she didn't falter at all, just kept on pulling.
The online Toyota statement says the Highlander is 'designed to handle most off road environments.' Then the next statement is that 'the 2wd and the 4wd-i are not meant for off road use.' Hogwash...
I had a Prerunner Tacoma and while it had more ground clearance and was only 2wheel drive with a locker it couldn't handle anything compared to this Highlander.
Results: my wife wants to go back out again (She had a blast) and if anyone in SoCal is interested in seeing what their truck can do let me know and I'd love to come out.

ps: it was funny to watch the mpg go up to 99.9 on some downhil stretches of trail...I wonder how that Expedition did?