Many channel models for MIMO systems have appeared in the literature. However, with the exception of a few recent results, they are largely focussed on two dimensional (2D) propagation, i.e., propagation in the horizontal plane, and the impact of elevation angle is not considered. The assumption of 2D propagation breaks down when in some propagation environments the elevation angle distribution is significant. Consequently, the estimation of ergodic capacity assuming a 2D channel coefficient alone can lead to erroneous results. In this paper, for cross polarized channels, we define a composite channel model and channel coefficient that takes into account both 2D and 3D propagation. Using this composite channel coefficient we assess the ergodic channel capacity and discuss its sensitivity to a variety of different azimuth and elevation power distributions and other system parameters.