There are plenty of competitive SUVs out there. The Nissan Xterra is close in size, and has aggressive styling. The Toyota 4Runner offers more luxury in a more conventional package. The Chevrolet Trailblazer is better-equipped, but has less ground clearance.
As with any vehicle purchase, it all depends on what you need out of your SUV. I didn't test the H3 off-road – if that's your purpose, you've got lots more research to do. HUMMER claims that the H3 can ford 24 inches of water at 5 mph – impressive, and I have no reason to doubt them. On the road, the H3 acquits itself well, and offers a pretty good value for the money. It's solidly built, and exudes quality from top to bottom. As long as you don't mind being the center of attention in every parking lot, the H3 is pretty easy to live with. Just make sure the tree-huggers know it's the H3, and all is forgiven. It's a kinder, gentler HUMMER. Isn't that what the world needs today?