Friends of mine in Colorado had two of these his/hers, plus a Ford F250 with aftermarket 4WD and a camper conversion. The Ford was for heavy duty excursions while the Subes were the daily drivers. As the guy in the video says, the shiftable AWD made these cars popular there as daily drivers because the only alternatives for year-round use were domestic 4WD's that were much more expensive to buy, maintain, and operate, and had poor reliability reps.
These Subarus were bad rustbuckets (like everything else in those days), but I recall being told that people didn't care, because they were cheap enough to run as beaters from the first day. Having driven one back then for a couple hundred miles, I'd say the video does not get across how cramped and noisy they were, and I never got close to an 80/85 mph top speed.