I think the problem here was caused by Subaru. They put only manual transmissions in the LGT, but failed to put in springs and shocks to make it drive like a sports sedan. If they had, a lot more buyers would have been impressed. The car could have been a poor man's 5 series. It's faster thaat a 535 twin turbo, and its the only powerful mid sized japanese car that isn't front wheel drive..at least until there is wheel spin. But if they were not going for a performance handling car, they should have given it an Automatic option...that would have sold more cars. I see tons of last gen LGT's and Outbacks with the turbo...almost all are slushboxes.
Makes me wonder if they really just want to simplify the line and just have 2 engines in the Legacy. Probably some car guys inside the company lobbied hard for the turbo...now the money guys can say " see, it didn't sell, so we dropped it."
Also, LGT's were unavailable for most of 2011 because of the earthquake. When I bought my used 2010 in June of 2011, dealers were telling me they could not even order a new 2011. When production ramped up, it would not make sense to build the slow selling Turbos. But then, those slow sales became the excuse for their demise.
At least they built enough for me to get one. And on the used market, they are realy holding their vale. And when I get my Bilstein struts next month, I will have the car Subaru should have been making from day one. If they had built it right back then, they'd still be selling them right now.