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Looks like a manual. So no, can't drive it without the shaft. Completely fixable. extension housing can be replaced in the car. Buy a donor transmission (can even be blown up) for $100 or less and a "new" driveshaft, spend a few hours crawling around in gear oil, and it'll be fixed. I definitely would, but I just put a brand-new rear subframe in a rusty '00 Outback with 325k miles on it, so I might not be the best person to ask.

Double check timing marks make sure they're dead on for both sides. That make a much larger difference than tensioning the tensioner pulleys, so if it's that bad i'd expect that. If it's not idling right then check the throttle plate for sticking and the idle control valve for operation or clogging. It's been awhile since I looked at the EA's but the ER's by this age frequently need replaced or cleaned. They gum up and stick and need cleaned or just fail with age. Get the FSM and follow the tensioner procedures. I attached one side shown here. Put tension on the cam sprocket as you tighten the tensioner pulley bolts. Do both sides. I don't think this should be causing low power and/or idling issues though. I've installed them without tensioning the cam's and they run just fine...but there's more things at play here so who knows.

two completely different things there.. Rod knock is bad, without a doubt. Piston slap is pretty much totally benign. yes, it sounds like a$$, but is harmless. Most noticeable when engine is cold (cold weather makes it sound even worse). Once warmed up it goes away - rod knock will not.

They were a marketing tool for the BRAT when it was launched. Could win one in a raffle and eventually I think you could buy them.