It is dissapointing that toyota only ever used this layout for the Tercels. I know other front wheel drive cars, the 2-stroke powered SAABs and DKWs in which the tranny outweighed the engine, that nuetral/oversteering handling characteristcis were common, I've never driven a front-driven Subaru though, and would be interested to find out how they handle.
With a transverse mounted engine all of the weight of the go part of the vehicle is in
front of the wheels, with a layout such as that used on the early Tercels, the weight is more balanced giving better handling.
The Citroen Traction-Avante acutally had the engine engine and transmission mounted
behind the front wheels! (it was one of the earliest front wheel drive cars) as did the American Cord (technically mid engined, so yes mid engined front wheel drive cars do exist - but they don't make anything like that anymore
)