i think it handles very well, its alot different to when it was 4wd obviously, i mean you do need to corner differently. but it does corner well, i havent driven it for ages but the only mods i had where strut brace, k brace, diff brace, and lowered springs. however i have now fitted 22mm front roll bar, nolothane bushes and rear subframe locking bolts to stiffen things up a bit. im yet to test these out though.
this is all stuff you would do to a normal 4wd subaru mind you.