It really is just a jacked up Imprezza, so it kind of blurs the compact car and CUV segments.
I don't think it blurs the CUV segment at all - I would argue that making a segment
by size alone is a flawed indicium of competition. There's no ONE CUV segment - there's small vs big; compact vs mid-size; economy vs premium vs luxury; sporty vs vanilla; quirky vs mainstream; and I'm sure we can figure out a few others...
Whether all manufacturers offer a vehicle that is sized identically to its competition does not determine whether or not they compete. Point is - not every manufacturer offers a car to directly compete with other manufacturers. Sometimes they do - but just because the ATS copied the dimensions of the last gen 3-series doesn't mean all competing vehicles must do the same. The Santa Fe Sport is huge in comparison to the CX-5 or the CRV, but they'll still be cross-shopped. I think it's time the 'segments' are ignored or standardized - and the latter won't happen. As such, when a buyer outlines his/her/their preferences, there are vehicles that will meet their criteria.
For example, my brother wants a 7 seater that can handle 2 child seats and adult passengers in the rear (and accessibility without too much strain). There are plenty of 7 seater SUVs, but he will cross-shop the Minivans and the Nissan Pathfinder (and the Pathfinder only because of its tilting seat that allows access to the rear with a child seat installed).
Many CUVs are just jacked up versions of lower offerings. The XV is based on the Impreza - very much so - but I wouldn't call it merely a jacked-up version. Subaru probably should have given it more distinct styling to differentiate it more away from such claims of similarity. Although the XV demands a price premium (~$2k- ish?), it's not the same as an Impreza - it has more ground clearance, more fitting brakes, different suspension tuning, specific body cladding, and some other uniqueness.
Audi is taking an A3, jacking it up, and calling it the Q3 - isn't this the same idea as the XV? So should the XV and the Q3 be cross-shopped? They're both small CUVs based on a smaller wagon, but whether or not a consumer would cross-shop them is based on the flexibility of finances and what he/she/they value.
I think it's great that manufacturers can economically gain greater market entry without having to design brand new vehicles from the ground up - this way, we all win a bit. SirO, and enjoy your purchase!! Great choice!