I find them different, and like them both. In STIi form, I think the 08 kicks serious ass, but in base form I call the 07 vs. 08 competition a tie. The 07's snout is more aggressive, but the back end is so-so. The front of the 08 is toned down, but the rear end has been refined and looks better.
The 08's interior is nicer.
They should add the Sport Package's equipment save for the "body kit" to the base model and keep the price the same. I can't believe the base car has no aux input for the stereo. Stupid. Add heated seats and aux inpit to th base Subaru, and you've got the serious value winner, closer to US prices.