In general I have really enjoyed owning this car and plan to hang on to it for some time yet. I've grown up around Subaru's and owning one hasn't dulled the experience at all.
Mine is the top spec Heritage, so it gets equipment that most of the lower models missed out on, dual airbags, ABS, 6 Speaker Stereo, Driving Lights, Factory Body Kit, Rear Spoiler, Leather and power everything. (Generation 2 Liberty's were built around the time of the recession in Japan, so cost cutting was inevitable!)
Admittedly more power would be welcome, so I may modify with a turbo motor in the future, but it's more than adequate for highway driving and overtaking. Although stay away from 2.5 litre models, this was the first generation of that engine and it is prone to problems. The 2.2 is very reliable.
If you do choose to buy a Subie, CHECK FOR A FULL SERVICE HISTORY! Mine did have one, so I was comfortable buying it, even with the high km's. Subies that are well maintained should stay reliable for years, but they are a very fussy car when it comes to maintenance, they need clean fluids and filters so don't skimp on this. The basic maintenance is very easy to do yourself, the EJ22 engine is very easy to work around. Neglect these cars and you will regret it.
One Liberty I looked at had only done 80000KM but had obviously never had an oil change! If you hear loud tappet noises when starting them, back away and look elsewhere because it's been neglected.
Parts are expensive but I have needed relatively few of them, despite the high KM's. These cars are more expensive to own and run than other 4 cylinders, I believe this to be justified by the added safety that they offer. Particularly in Australia where roads can vary from excellent to absolute crap, AWD makes sobering sense.
It's quite happy to venture off the road just as long as you remember that it isn't a purpose built off roader and does have limitations, like ground clearance. I have taken this car on a ski trip with a bootfull (it's a wagon too) of luggage, 3 mates and roof racks loaded with skis, boards and poles, all while climbing up and down a mountain to go skiing every day and it handled it superbly! Alpine areas have a truly scary number of Subaru's come to think of it...
AWD + Auto Gearbox means that they can be thirsty around town if you have a lead foot, they suit highways well though, mine uses 7.8 L/100Km's which is pretty good for a car it's size.
Overall it's a very comfortable car, perfect for long distance trips. It's very safe and easy to drive, grips, handles and stops better than many other cars I have driven. For it's age I doubt you will find better!