I agree that it defintely boils down to personal needs.
Although, to me it seems like the sole benefit of the N82 is the Xenon. If you prefer the level of illumination Xenon provides for flash photos in very dark settings, then you're not going to get that with the N86. Although it's worth noting that the LED flash on the N86 (as demonstrated in the AAS review), in combination with the more sensitive sensor and for subjects within a couple meters, is definitely a step forward for LED, although not on the level of Xenon. Also the N86 with it's LED flash appears to have better color accuracy than the N82 with Xenon, in those situations of course where the N86's flash provides sufficient illumination.
So the benefits of the N82 with Xenon are fairly specific.
It's also worth noting that the N86 appears to be able to shoot decent video in dark settings, using the LED flash for illumination. The N82 and Xenon can't do this at all. So for those who want to shoot video when they're out clubbing, which I imagine is becoming a more popular thing to do, the N86 is an upgrade from the N82.