It's cheaper than an XSE trim, but specced more closely to an SE model.
Something I've been debating on lately on other than a Tacoma is what would be my next (new) car. I very much like the TRD Camry but I also like the Avalon (and hopefully the TRD Avalon). I sorta want the Avalon (TRD) because I would like to enjoy that luxury feel and drive but at the same time I love how the TRD Camry looks. My only issue with the TRD Camry is that I am always gonna keep my 08 Camry so I feel it is a bit redundant to have my 08 Camry and a TRD Camry because I am sure I am gonna drive the TRD Camry more. If I were to get an Avalon (TRD) instead... well... I get to choose which to drive... (me being hypocritical).
With discounts and all that, the Avalon would be the better buy IMO. Not sure what deals will be had for the Avy TRD, but given how much money is on the hood on current models, Toyota dealers have no reason to price gouge like they do Supras or TRD Pro models.