John,
I can't speak for everyone, but I'll tell you what I've gathered. The rest of you guys, these numbers are off the top of my head, and if I have any of them wrong, please chime in.
The horizontally-opposed four-cylinder configuration is popular because it (a) results in a compact setup under a cowl, with the cylinder barrels laid out in an optimum position for air cooling, and (b) it has inherently lower vibration than a four-cylinder in-line engine. This is why most aircraft engines are made this way, and why the old VW Beetle and Corvair engines have been popular conversions for aircraft use.
When you move into the water-cooled world, some of the aerodynamic advantage of the horizontally-opposed configuration becomes moot, but it's still a good setup for compactness and keeps the weight concentrated near the center of gravity.
Of all the car engines, Subarus are relatively light for their power, and seem to be one of the few designs which will tolerate being run near their maximum horsepower output continuously. Given enough radiator capacity and a good oil cooler, they appear to be capable of 1500 hours or more without an overhaul if maintained well and not otherwise abused. Most car engines die young if run this hard.
A Subaru 2.2 weighs about 280 pounds, more than some complete gyros, and makes 130 HP with the stock fuel injection, less with a carb. Pulled out of a car, cleaned up and equipped with a reduction drive, they can cost as little as $2,000. You'd end up with a very heavy single-place machine if you took this route. The Rotax 582 makes half the horsepower, at about one-third the weight, but costs about $6000 with reduction drive, and burns about 40 per cent more fuel. Bottom line: Guys trying to build gyros cheaply are about the only ones using a Subaru on a single place.
There are still some gyros around flying with the old Subaru 1.8-liter engines, the EA-81 (pushrod) or EA-82 (overhead cam.) They are limited in how much power you can make through tuning improvements, and are gradually falling out of favor. They typically made 75 to 100 HP, and weighed about 200 pounds. The aftermarket Australian Sub-4 heads provided better flow, and they rated the 1.8L engine with their heads at 125 HP, if I recall.