My wife currently has a '96 GC Laredo 318 full time 4x4. It just turned 100k last week. Now this thing has gone literally anywhere we have tried to put it. For the most part, my wife has been very happy with the vehicle. She is most impressed with it's performance in the snow. The full time 4x4 and 4-wheel abs makes for a very good winter vehicle. We are planning on selling ours in the near future. The wife wants a new QC CTD instead of another SUV, basically because we are looking for something bigger and she absolutely loves these trucks.
The GC has been somewhat of a maintenance problem however. It started at around 70K. A front end noise began and ended when I rebuilt the front diff and replaced both hubs. It has been fine since. Secondly we have had an electrical gremlin that neither I or the dealer have been able to find. Occasionally the gauges will quit, and not come back on until the turn signals have been activated. At that time, the gauges will come back on and work fine for weeks and then do it all over again. We have also had some intermittent failures of the headlights. I'm sure it is a grounding problem, but again, I havn't been able to find it or reproduce the problem on a regular basis.
Recently the engine has developed an oil pump/pressure problem, which in turn turned into a lifter problem. I took care of that one over the last several weeks. I am a preventative maintenance freak and it has bothered me that we have seen these kind of issues. All in all, I've been impressed with the performance/drivability of the Jeep, but somewhat disappointed with the reliability of major components. Again... . this GC does have 100k on it, so I can't complain too much. It has never left us stranded. I'm sure that the problems that we have had could be chalked up to wear and tear, but they have happened.
Finally, the 318 has never shown very good fuel economy. We have seen around 18 mpg on very long trips (PA to Florida), but usually see something around 12-13 mpg.
Good luck with your search.
Justin