Never mind the Camry Steve. Tell me how would you think the Taurus compares to the Avalon.
It don't.
Avalon owners, such as my sister's husband, are like former 60's and 70's Olds 98 and Cadillac owners. They seek quiet, highway floaters with lots of interior room. But this time around they don't want any technical issues, plus they want proven resale value and reasonable mileage. He's 63.
Avalons are not even on the radar in Canada due to pricing, but his 2006 new Avalon Limited Nav, not available here, cost him 30K USD at the end of 2006. They gotta be cheap to build because they are essentially stretched Camry XLEs so Toyota should be able to make a continuing business case for them.
The Taurus is a restyled 500. Will that restyling be enough to make a winner? I dunno. IMO, they are falling into the same trap. Too expensive for the mass market and too much range in price. One dilutes the other.
What they really needed to do, if they are being true to the Taurus heritage, is admit that the current Taurus was a horrendous dud and build a car that bests the Camry and Accord. Something between the Fusion and the Taurus. Not easy considering their current power trains, but if your not in that market then who are you targeting?