<< The thing is, this car isn't being marketed necessarily toward the SUV market; rather, it's being marketed to the Soob SUW (Sport-Ute-Wagon) market. In all honesty, in all terms other than price, it doesn't compare. >>
It's being marketed as "something" different. It doesn't really have a classification. It goes up against the Ford Focus ZX5, PT Cruiser, and Protege 5. None of those have AWD so just be happy that you have the option at all. Besides, with the 180HP engine, it would smoke 'em all.
<< Toyota isn't bringing the Matrix out to compete with these - it already has the RAV4. >>
That wasn't the point. The point is that AWD systems like that are used in quasi - sport utes. The lack of a transfer case is not a problem for these vehicles as they never see any off road duty, and neither will the Matrix. It just kicks in when needed; just as it should be.
<< Personally, I'll take a bit of compromise; my 2.5L 165HP with AWD all the time works fine for me. That's my point - if this thing is intending on wooing Subaru owners, it has a lot of room to go. A Subaru isn't that much more expensive - $18k vs. $15k base-model prices, but in terms of the Sport-Ute-Wagon, is a much better car. >>
It's not intended to against the Subaru. What gave you that idea? Just b/c it has an AWD option with a 123HP engine? That's hardly a Soob competitor. I've already mentioned its competition above.