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The question isn't what car is more practical. It's what is the better redesign. With that said I'm torn. I think the Vette probably gets the nod for being more edgy.IMO the Corvette is a second or third car, something to have fun with on the weekends if you have bank. The Mustang is good enough to be your only car, so it get's my vote without question.
I think you've nailed it squarely.I think Ford had to walk a much finer line than Chevy with the vette. Going from retro/popular classic design to something more modern was not an envious task. Much more at stake for the Stang also. From this point of view the Mustang hands down wins my vote.