I should have researched this more before I posted. I did so last night. The check engine light could be a problem, I'd have to look into that. I did bypass the EGR on a Nissan once with a resistor taped into the plug.
I thought the 92 was an interference engine. I'd seen that online, and that's what the mechanic who replaced the engine told me. Other than the problem with the EJ25 and head gaskets, are late 90's Outbacks reliable?
The 92 EJ22 is most definitely not an interference motor.
In terms of wether or not to do the swap, EGR issues aside yes, do it assuming the motor you have is solid. If your location doesn't have emissions testing then just ignoring the EGR shouldn't be too much of a problem although the constant on check engine light would cause you to mist anything else it was trying to tell you. If you've not got emissions testing you could always just swap over the ECU too. In terms of cost, if you've got the motor already, should be about $700 in labor, at least in my area. As long as the motor is out, you might as well spend a few $$ on parts and have every possible seal replaced as well as timing belt too.
The only thing you may notice in terms of performance is that with the taller gears and larger wheels, acceleration with the 2.2 may be a little but sluggish. On the upside though, it would slightly improve MPG.