You must have the X-type confused... It's squarely aimed at the IS and 3 series market! It's based on the Mondeo/Contour platform, 231HP (3.0), and sticker starts at $29K (although that is for the smaller 194HP engine)! The 3.0 is expected to come in at about $33K base, which is right in line with the IS/3 Series... The only catch is they are going to nickle and dime for options (like BMW does) and the 3.0 can approach $42K quickly. I just really wanted to point out that this car has nothing in common with the LS/S-Type platform (well, except heritage of course).
I think they have a nice competitor, although the IS is by far my favorite.
The X-Type is very much an IS300 competitor, particularly the cheaper 2.5L version. I hope IS300 fans don't say "but it's so slow!", cause that's exactly what people said about the IS300 when it came out.
It's based on the Mondeo platform, not the LS, and according to European reviews, it's a great car in 3.0L AWD manual form. But I'd take an IS300 manual over the X-Type any day.