I'm getting my transmission beefed up by Renntech and have a Cadillac XTS for a loaner. I drove it home last night, to the gym this morning, to the mall this afternoon and I just got home. I like it. It's nearly 100% traditional "Cadillac". Even the engine feels kinda traditional in a late 70s / early 80s sense (it can't move out of it's own way). Around town power is perfectly adequate. The ride is smooth but it still handles well (though not floaty like a traditional Cadillac). The engine feels very smooth unless you need passing power or need to merge into traffic moving over 40 miles per hour - then it's a bit loud and it sounds like it's struggling. I'm sure the twin turbo XTS - even with it's reduced torque - is great. The seats are 110% traditional Cadillac. There's no support but that's fine with me because this car isn't for carving corners. It's pretty quiet inside. I don't like the capacitive controls but it only took me about ten minutes to get used to. No big deal, really - but I definitely prefer normal controls. The car feels roomy from the front seats - I haven't sat in the back of an XTS in a long time. The materials inside are fine.
Altogether I like it (though I wouldn't buy it) and I do believe there's a place for it in Cadillac's lineup - one single car of it's kind is good. However, if an upcoming RWD car comes to replace it - that wouldn't bother me. I can't say I really feel "good" driving it like I did my LS460L or my current E63 AMG. But I think the target audience for the XTS has a nice car if they want a Cadillac.
I still feel the XTS should have been named DTS because that's essentially what it is...