Unless you are on first name terms with the LR dealer, in a word, yes. They were over 40k new by the time you'd put a few bits on them, they are 15k now 4 years later. For a reason...
I had an 04 HSE. Loaded. Under warranty it wasn't so bad - it just required plentiful trips to the dealer, always for electrical 'issues', mostly when it got below 20 degrees.
Fuel economy was awful - 12mpg on average, and it needs premium, so fillups were frequent and pricey.
Mechanically it was fine, it towed a car on a trailer just fine, but the acceleration was glacial whether it had something attached to the back or not, and it corners like a boat.
I was so happy to get rid of it though that I didn't care how bad we got stung on the tradein. We bought it new and lost a bunch - the single worst car I ever owned in that regard.
I have to say it was better than the 02 Freelander it replaced. Couldn't keep that out of the shop, winter or summer.
The LR3 we have now is better all round. If you can stretch to one of them, desperately want an LR, and don't want to tow (the cost to set one up to tow is eyewatering) I'd say do it, otherwise there are so many better options.
The lease on the LR3 is up in September. I'm 90% sure at this point that we're going for a large cab F-150 to replace it.
Slightly OT - On the plus side, LR customer service is (and always has been) <span style="font-weight: bold">great</span>. I took both the VW and the LR in this week, and it was a study in contrasts.