The LR4 drives a little better in my opinion. When they first came out I kind of noticed just a better feel to the steering geometry. The LR4 has more power and the dash has a nicer look to it. The LR3 runs the old 4.4 liter jag engine that has proven to be the most reliable engine Land Rover has run to date. The 5.0 engine makes a ton more power but has had its issues along the way, water pumps mostly,timing chains noisy with a couple updates for tensioners and blades that seem to quiet them down. I've seen a couple get lifter bores fagged out witch was blamed on materials,only a couple so not much of an issue.The 5.0 does not like to be overheated at all,and with questionable water pumps that's something your gonna want to keep your eye on.
The LR3 was much improved by the 08 model year with a lot of improvements in the wire harness splices and communication networks between modules.