1996 and the introduction of the Outback was a major event for Subaru. It gave them an identity that they had been missing, and created the "crossover" segment that is now very popular. They changed things up again in 2002 when they brought the WRX to North America. Subaru was finally clear of their "odd little car" reputation, now known for both AWD utility and performance.
I've toyed with the idea of buying an 04 or 05 WRX. Prices have come down a lot, and the 2.0L, while lacks the grunt of the 2.5, has a ton of aftermarket mods available.