I've owned my 04 legacy 35th anniv wagon with 5spd manual since 2007. I bought it with 33K and it now has 58K miles. I had a Jeep Cherokee before this and it was not a good driving vehicle, nor was it good in the snow (surprisingly). I bought the legacy wagon because I wanted awd and some room in the back like an SUV, but I also know that 95% of the driving I do is on the road and I wanted a car that drives like a sports car. This car does that. I have a separate set of wheels with studded snows for the winter and when I have to drive in really bad conditions (I live in CO) I have no worries at all. Awd with manual trans and studded snows all around are great.
Good handling, cloth seats, good utility with a wagon, feel safe and in control in the worst weather and driving conditions. I like the looks of the legacy as opposed to the outback. I don't like all the body cladding and other crap on the outback.
More power, better gas mileage (but really it's not too bad). It's kind of noisy at speed, make it quieter. Make the front sunroof slide open and not just pop up.