It looks better than that B5-TPH abomination they came out with a few years ago.
Series is probably a better hybrid setup. I just test drove a
2010 Prius last week (I know, shameless plug), and the constant shutting on and off of the gas engine got kind of annoying.
However, to make the electric motor powerful enough to move the car with some authority would be a lot more expensive.
A series setup would dictate that Subaru's drivetrain would be fundamentally changed as well. There wouldn't be any 'symmetrical' transmission and axle setup. The AWD would probably end up being four electric motors at each wheel, or at least that would be the smartest way to make the AWD dynamic. Furthermore, since the gas engine is just a generator, it can essentially be mounted anywhere in the car, which takes away one of Subaru's marketing strategies that the low-mounted boxer engine gives better center of gravity.
At least they're getting on board with direct injection. About damn time if you ask me.