That is good news, I would like to see how the 2008 weathers it as a) there is more awareness now and b) due to the awareness I've seen more people waiting for the 2008 improvements.
I have been seeing the first photos of the '08s and do see some nice things. I'm still glad we got our '07, but the vents and arm-rests look nice. I still think it all boils down to the advertising thing though... I suppose the relative popularity of the Rondo may help, as any smart shopper will run across the comparisons.
I also think that that beige/tan interior will make a huge difference in sales, as there are a lot of people that absolutely hate black interiors. I had a loaner Mazda 3 with tan interior for about a week and it was a nice setup, so I imagine the tan 5 will look nice as well. I will go out on a limb (perhaps) and say that I just don't get the LED Taillight design. I like the idea of LED taillights, but the units on the new 5 look like the tacky add-on I seen on the rice-rockets around here. Hopefully that is just the photos and the look good in person.
I still think one of the the 5's biggest hurdles is the sliding doors. My wife and I love them, but I know too many people who would tag it as a minivan and not take a second look. My wife thinks of it as a crossover or mini-minivan (somehow sounds better then plain minivan). I still tend to think of the 5 as a car (pretty much a sport wagon with sliders.
I was somehow disappointed on sales and advertising last year but now I love how unique it is, 2+ years and still turning heads

. In contrast I now see many more fugly Rondos around (including rentals) and is just boring. Plus, every time I see a Rondo, it looks all crappy/dirty/non-cared for, while the few Mazda5s around seem well detailed and clean.
I have seen a surge of Rondos in my area, but most are looking pretty nice. I have noticed most being the the top line EXs. The 5s have been there as well, but have really exploded in the last few months. Again, 90% of the 5s I see are touring models. Our sport feels unique because it has no spoiler/side sills or sunroof. It also helps that she's Strato Blue (purple), and most 5s seem to be Silver, White, or Garbon Grey.
I hate to make generalizations, but I think the Rondo and MZ5 represent different "statements" in the market. Mazda seems to to be making an upmarket statement as a whole. I rarely see a base Mazda, other than a few Mazda6s. It was nice to get a base 5 sport that seems to be equipped on par with a mid-line 3 or 6. The Rondo is a great example of the new Kia, but come with the baggage of the Ghost of Kia past. Also, at least in my area, Mazda ads are zoom zoom showcases of MX5s and CX7/9s, whereas Kia has a local ad the goes something like: "Need a car? Have $99? Good/Bad/No Credit? Come see Kia."
Both MZ5 and Rondo are close matches, but in different directions in the market. One truly has to seek out a Mazda5. I don't really see a lot of buyers shopping the CX7 and being shown the 5 as an alternative. Even 3 shoppers are going to be a tough sell into the 5. Also, the Mazda repeat-buyer base seems to be relatively small, although I think in 3-5 years, it will be substantially larger. The Rondo, on the other hand, is a clear upgrade path vehicle. Many people have gotten into a Kia relatively cheap, and have probably done with the long warranty. Once they grow out of a smaller car, Kia now has the Rondo to present as an upgrade path. there is the V6 for power and even the EX for those wanting leather luxury. The MZ5 has leather, but it's a more singular luxury item, as the step from T to GT is really leather and HID headlights. On the Rondo you can offer the upgrade from cloth, basic, 4cyl, to leather, V6 luxury. Kia also has a distinct advantage in that they can put a teaser 5-set 4-cyl Rondo in the paper at maybe $14,999 and then up-sell into the $18-$20K range. Mazda doesn't have the leader on the 5. When we were looking, the local dealer had 2 used 20k mile '07s for $17,999. Invoice was $17,995 on a NEW Sport and that's what we got. Kia can also push Electronic Stability Control. It seems to be a bigger deal these days in the auto market. I guess I don't quite get the "need" for ESP, as I've never had it and have never wrecked a car for lack of ESP. I have definitely made some mistakes and even spun out a few cars at speed, but I have always had a good feel for what I am driving and use proper defensive driving to stay out of trouble. If it were offered, I would take it, though I would want an override for back country carving.
So what deos it all mean? The Rondo sells easier, therefore more units that the 5. I'm not worries as long as the 5 has a good run. Most of the parts are shared with the 3, so there should be no future replacement issues. The '08 MZ5 should help sell more, but still sorely needs at least a small advertising campaign (maybe during the soap operas). For now, I will bask in the relative smallness of our little MZ5 group!