Tom captures the difference between the Palisade and Telluride perfectly in his comment about hikers in the Telluride and spa customers in the Palisade. It's worth noting that that difference stems in large part from the different national markets to which each is aimed. The Telluride is an exclusively North American vehicle built in Georgia and meant to be cross-shopped with mainstream three row midsize crossovers. (e.g. Pilot, Explorer, Highlander, Ascent, CX-9, etc). At least equally or better equipped with a moderate price advantage. The Telliuride is not even offered in other international markets in Asia and Europe. (Not even in Korea.)
On the other hand, though the Palisade is also meant to be a North American success, its broader mission is in other international markets in Asia and Europe where vehicles the size of the Palisade are almost exclusively from European luxury brands. Especially in Asia where the middle class is still growing owning what consumers there consider to be a large SUV is emblematic of economic success. The near luxury vibe of the Palisade is especially appealing. A vehicle aimed at camping and hiking, much less so.
Tom is correct, I think, that in the US the Palisade may divert some sales from luxury SUV's but the line between the Hyundai and luxury brands is still an important one in North America. More important is the appeal of both the Telluride and the Palisade to mainstream buyers. But in markets where what Americans consider mainstream three row midsize SUV's are relatively rare, the Palisade is meant both to capture sales from luxury brands and to expand the market.
The Hyundai/KIA conglomerate is especially skilled at badge engineering, offering similar vehicles with shared platforms and components to slightly different market sub-segments. The Palisade and the Telluride are the most recent and obvious examples.
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