subaru dealers might not be great, but from my experience, volvo isn't that far off...
the 3.2 isn't their best engine, but i didn't mind it. thought it could hold it's own and was alright compared to some older engines out there. seemed well balanced, jut not real strong on power.
the sedan thing, the reasoning i hear from people can be multiple. having the wheels in a trunk keeps noise down... keeping storage away from passengers (danger in a crash, smell [think sports gear]), exterior appearance, makes the car "feel" smaller as a sedan... the space might be more in a hatch on paper, but not as many people actually use the extra square footage above the beltline as you would think.
still.... the type of people who go want awd with ground clearance are usually those few who can use that extra bit of space (campers, skiers, etc.) so i can understand the lack of demand.