Looking at the pics, your brake rotors are done for, and it looks like the pads haven't been making proper contact, which is most likely the pads being more or less locked into the caliper mounts. When you replace the pads, make sure you either wire brush or carefully file the tracks for the pads to get rid of any rust/ crud buildup that is keeping them from sliding easily. Also remember to lube the caliper pins. If you are still looking for new ceramic pads and rotors, I found a matched 4 corner set for my 2K Legacy Wagon - should be same bits as the Outback - for just under $100 on flea-bay... there were a few sets for a bit less, but they didn't pass my muster. My rear rotors weren't as cooked as yours, but they did have at least that much of a rust ridge on the edges of the rotors when I bought my Subie 6 weeks ago, and I was going crazy from the major squealing coming from the pads from just going around turns (not even touching the brake!), so you may have been lucky that the pads weren't touching the rotors anymore!!
