I just checked and it seems the Subaru Outback is bigger than the Golf Variant and has otherwise similar stats.

Are they not the same class of car?

Different size class. The Outback is a lifted large sedan with an extended trunk, there aren't any vehicles on the market that compare to it except perhaps the Toyota Venza.

Outback "competes" with the crossovers which are usually shorter in length and have taller interior space.

Don't they sell the Mercedes E-Class T Model in the US?

Volvo wagons start at about $51k CAD, MB C-Class starts at $57k CAD and an E-Class starts at $81k CAD. This is out of reach of Jonny Everyman (including me).

I purchased a base Golf Sportwagen with 4Motion back in 2017 for around $29k which was surprisingly nicely equipped (DSG, tunable engine, decent soundsystem). A similarly equipped Suburu would have been mid-to-high $30s.

If I had freedom to "flex", I would have gone for the Volvo because of the safety street cred.

Perhaps, Mercedes is luxury though. People are more likely to purchase something that provides better value/size/gas mileage that costs 40% less.

My mistake. I did forget about this one!

I hope you’re right. I’ve been driving wagons for years, but the US market for them has been shrinking consistently since crossovers became a thing. Europeans seemingly have oodles of options, but God forbid automakers allow Americans a sporty AWD wagon with a manual transmission…

The very hard edge on the tail of a wagon makes it a terribly great at producing turbolence which is bad for fuel efficiency. I think shooting break or sort of stretched-out hatchbacks will be where it's at.

Isn't the Subaru Outback still a station wagon even if they try to disguise it with crossover inspired body panels.

It has quite a bit of ground clearance despite it's low profile. It's higher off the ground than more popular models like the CR-V, RAV4, Highlander, etc.