Mustang wins at low volumes. XDs are good but having the tube pre and power amp means the tube doesn't really color your tone until it's cranked...which is what most people are trying to dodge in the 5w combo realm.
My preference would be still be the Vox VT series cuz you just get the power level you need, the $70 foot controller and the $99 Vox Wah and you've got every basic guitar tone you'll need for under a grand. That Valve Reactor circuit is really awesome.
However, most people who are looking at modeling amps are thinking 15w = $99 because that's what Line 6 and Peavey are doing...so Fender took there time and now that they've entered that arena, they are winning.
I mean think about it. It's a wide open field and a spider is fighting a viper. Then this big horse comes in and just stomps all over everything and gallops off, triumphantly...