I always hear people raving about the Impreza, perhaps I should check it out.. Why are they so popular???
They've always been popular among the sports/outdoors crowd and people who live in rural areas/snowy areas because of the standard AWD on all models, but never really made it mainstream because of gas mileage (only used to get 20-25).
The 2012 is a complete re-design that fixed almost all of the complaints people used to have. A smaller engine and the new CVT (continuously variable) transmission gives the '12 Impreza 10 MPG better than the '11. (26 city 36 highway 30 combined IIRC). They added bluetooth phone link, bluetooth audio streaming, ipod integration, redesigned the body to look nicer and give way more interior room.
It's got 7 airbags standard, vehicle dynamic control (for stability), traction control, electronic brake assist. Got one of the highest ratings for 2012 compact sedans for crash ratings.
Sorry if I sound like a sales guy, I drove one a couple of weeks ago and am just trying to remember what the guy told me. I have a bunch of friends who drive Subaru's (some out in the mountains in Colorado and also up in VT/NH) and they all love them. Very reliable, not crazy expensive to get parts for (like some german cars), and they are a blast to drive.
I originally was leaning towards the '12 Civic until the '12 Impreza came out and I got to drive it.. now I'm 99.7% sure I'm getting the Impreza. Go check it out.. it seems like exactly what you are looking for, and once you drive it you probably won't be disappointed. The sales guy I talked to at the dealership said they are selling like crazy, they can't keep them in stock. I drove the only one on the lot the day I was there, and he they get about 10 a week and sell them right away.