That is promising!
What I want to know is, why didn't they add this to the new Legacy? Its been 2 years now, and only the wagons have folding seats (to my knowledge).Whereas the old generation 95-99 Legacy had full folding seats in sedan & wagon. Anyhow, that doesn't seem to bode well for the Impreza.
They'd have to be idiots not to make the Impreza competitive w/ other compact sedans, since I'm sure the Jetta, Protege, Corolla, and Civic all have folding rear seats, probably 60/40 split. Its a commoditized feature these days. Time was, only VW was retarded enough only to have a pass through.