Send alert email with attachment

No, but you could build a SF report using the filter criteria "My Leads" and "My Contacts" (two separate reports). Then you can email the link to those reports every day. Each person who clicks the link and views the report would see the data pertinent to them.

I was under the impression the Report email would send the XLS file along with the email.

The scheduled SFDC report doesn't attach a spreadsheet like Marketo reports do.

If all your reps need is the email address of their leads, which they can copy/paste into SFDC to look them up, then you could create a Marketo Lead Performance report for each rep using the Lead Owner Email Address filter and the Group Leads By setting of "Email Address".  You could schedule this to be sent to your reps each day and it would include the daily list of email addresses in an Excel spreadsheet.

I suppose that will work if your list of sales reps is small and you're up for maintaining those reports as the reps come and go.