Well here is the wrap up. Changed the water pump, idlers, tensioner and timing belt. Set the timing marks per the manual. Got all the sensors, plugs and wires back where they needed to be. Verified all of the connections I had already verified (nervous that way). Turned the key and it fired right up.

 

After I knew it would run I double checked all the torqued bolts (nervous that way) and buttoned everything back up. Replaced accessory belts, cleaned out the radiator again (nervous that way.... can you see a pattern?  ) and filled it with new coolant. Seemed like it took FOREVER to get all the air bubbles out of the radiator but I tried the tricks I learned from USMB over the years and sure enough got the air out and the coolant circulating.

In retrospect if my other Outback -after driving 45 miles today- was to die tomorrow after running for 30-45 seconds I would probably trouble shoot the same way. I would do fuel delivery first then check for spark. If I had fuel and spark on 1-2 but not 3-4 I would probably go in the same order: coil if ok > igniter if ok > continuity if ok > sensors if ok > ECU.

If you hear hoof beats look for horses. This was the very RARE situation when I heard hoof beats and looked for horses but it turned out to be a zebra.

THANK YOU to everybody who gave suggestions and technical information. I truly and genuinely appreciate it.

Not so rare. Your horse had a broken leg.

Cam and crank sensors out of sync means you'll get no spark on one pair of plugs.

Lack of compression is also often present with a timing issue, just have to know what to listen/feel for when it's cranking over. That knowledge only comes from experience. Now do you know what to listen for to pick out your horse from the herd?