Where do you live? I ask because there have been changes that would make my suggestion different if you lived in a snow belt or in a sun belt. Other than that there isn't really much different.

I'd focus on the features available on the trim level and which option packages the car has. Also its service history.

 

I live in the snow belt - Pennsylvania. We're thinking of an XLE with the convenance and weather package. Obviously we're considering an AWD, and I know about the issues with the cable to the rear motor. What years had this problem and after what years was the problem resolve by Toyota?

 

First off if you get a hybrid it will be AWD if you want it or not. Second, pickins may be pretty slim out there, so you may not have have the chance to be too fussy.
We really like ours FWIW. Though there are things I don't like as much It's too small and cramped for me I am always hitting my head on the roof or the pillar, I can't get the driver seat far enough for my size. Rear seat room is VERY tight if that is important to you It's a good size for my wife. Who's a head or more shorter than me. But I'm not "big" either (6'1 and 185) so be aware of that shortcoming. YOu may want to set your sights on a Highlander hybrid of the latest gen With the Grand Hilander out I am sure a few of those will show up on new car trades. But if you're smaller stature the RAV is a great little car.

 

81 years old. 6', 220. Fit just fine. Never hit my head. But then I fit in most cars. Son who is NFL lineman size (6'4", 300) drives it too. Is it great? No but I do take 2 other men and their golf bags 20 miles, wife and I 300 miles one day and back the next.

Owned everything from a Grand Caravan minivan to a Alfa Giulietta Spyder Veloce roadster.

Buy a car fit for your purpose.

Try it, see how you like it. No reason you should take my opinion. Your $. Your car. Your choice.

 

...Alfa Giulietta Spyder Veloce...

 

Bottom line, try one on for size in the model trim you want. We went on ours based on test driving an LE trim ICE model with no sunroof/moonroof or whatever they call it.
We ordered one based on that. But wanted all the bells and whistles and hybrid. So we ordered the Ltd, and picked it up literally the day after it came off the transport a few months later.
It's primarily the wife's driver not mine. I always drove the Highlander (plenty roomy) until we leased the bZ4X which FWIW has even more room than the Highlander had (though no 3rd row seating) which was not important to us anymore. Since we don't have children living with us anymore.
Both cars suit us just fine. The RAV is just "cramped" to me. Which is why I noted to try one in the trim and outfitted how you want it.
The hybrid battery does change things in back slightly, and the limited trim does as well with the sunroof and such. So it's why I indicated try it the way you'll buy it.
It's a great vehicle otherwise. And other than feeling cramped in it it's great to drive.