Never wanted an H2, just too big. I bought an H3 because my built Cherokee was getting pretty worn out, I wanted a little more room, and didn't want to build up a Grand Cherokee for wheeling. That led to an H3T when we got rid of our Avalanche. A couple years later wanting to get back to an SUV and wanting a bit more rear leg room (damn kids keep getting bigger as they grow up) I looked and looked trying to figure out something that would work. Finally I let myself be talked into test driving an H2 and that was it. There just are not any other SUVs that are as comfortable to drive on-road, can tow decent sized trailers, and can keep up when wheeling completely stock. Yes, they are a little big for some areas and I still think an '09/'10 H3 Alpha w/offroad package is a better wheeling vehicle overall being a bit smaller and having a front locker, but as twin pointed out when you want to tow and wheel and take long trips in comfort the H2 is about as good as it gets. The Raptor and Power Wagon may be viable alternatives, but only if you want a truck bed instead of an SUV.
Maybe it's a PA vs UT thing, but I've never been hassled about it. Even the mpg comments are few and far between.
I do sometimes wish I had kept my old Wrangler (in addition, not instead of). Soft top and far smaller vehicle for a much different wheeling experience, but not nearly as enjoyable a vehicle for day to day use. I figure one day I'll pick up a UTV, maybe even a 4-seater, and have the best of both worlds.