I've owned my TCH 9 days travelled almost 2200 kilometres(1375 miles) it's already returning 5.9 litres per hundred or 39+ miles per US gallon, it's quiet and has most creature comforts. So overall I am happy but would be even more happy if the front end had a little more bite. It under steers (pushes) something wicked, yes I know it's front wheel drive but so was my Maxima SE. I believe a lot of the problem is due to the 60 series tires that roll over and give up.
So you bought the car for economy Andy why worry about handling?
If I don't have to slow down for a corner, ramp I don't have to waste energy re-building speed.

 

I won't be surprised if an upgraded handling package is offered as an option on future Camry Hybrid's. Maybe not the 2008, but the 2009 and later for sure.

 

Yea sure but remember, unlike your Maxima, your TCH reclaimed most of the kinetic energy and stored it in the traction battery for acceleration.

 

Yea, it does feel heavy in a turn, handles more like a mini-van that a car. Mine is about to hit 11 months old, I don't know if the factory Michies are stiffening up a bit or I'm getting well used to it, but lately I've found it's been handling the corners somewhat better.

 

I went from a brand new 2005 Camry SE (4 cyl) to the Camry Hybrid. The Camry SE had amazing handling and was a blast to drive. Going from that car to the Camry Hybrid has been disappointing (for the handling reason and the throttle lag), but understandable since the current hybrid is not yet targeted towards people wanting sporty cars. I would happily part with up to $3000 if I could get an SE package added to my car. Hmm... The downside to having the SE performance was evident when I traded it in at 15,000 miles. The $300 a piece Michelin sport tires that came with the car were noticeably worn down (due to the soft rubber and more aggressive driving style the car allowed me to have). Also, when the hybrid finally decides to "open up", I get an impressive burst of power that did not exist in my 4-cyl Camry SE.

 

Try increasing the air in the tires to 40psi. I find it makes a noticeable improvement in handling. Road feel, cornering and braking are all improved. After 17k miles, tires are wearing evenly with 42psi front, 40psi rear.