I don think they are over-priced
You get a lot of nag for the buck, not to mention some Rover\BMW engineering. for about 20 grand, you get a lot. Dealers are not allowed to price gouge, and once the 2003 year comes, there are going to be a lot of them.
I live in the SF bay area...I will probably wind up working in San Francisco or San Jose. Gas is way over priced, there is always traffic, and dont expect to find a lot of parking
I looked at the WRX, it's obviously a faster car, and larger, but its also fugly and tinny looking (not tiny, tinny).