I think I can shed some light on this. First of all you can't go wrong with either car. I miss my STi because that thing was just stupid fast in every way. But I think your decision comes down to what you plan to do with the car. If it's your daily driver I think a S4 would be a better choice. If you just want to go fast cheap it's hard to beat a STi.
The STi handles like a champ, but you pay a price in ride quality. When I used to drive from LA to the Bay Area I would have to take 2 stretch my legs/my ass hurts breaks. It's fine for short trips, but after about 2 hours behind the wheel you were hurting in the STI. I can drive 4 hours to Tahoe for skiing in the Audi and feel great and ready to hit the slopes. The ride handling trade off is way better in the S4.
Also as you can see the interiors are vastly different. No girl cares about a Subaru regardless of how fast it is, an Audi on the other hand is something the ladies like.
My mileage in the STi was only 16mpg while I average 18-19 in the S4.
Reliability the STi wins hands down. I had two Subaru's that lived hard lives in my hands and I didn't have any problems. The S4 on the other hand... If you don't work on an S4 yourself I definitely see how it can get too expensive. Especially around here where the Euro specialist are $150/hr and a good cheap general mechanic is $100/hr. The sad thing at this point is that I am starting to enjoy the gremlins in the S4. I have learn more about cars in the last year and a half trying to fix my S4 than I did in 5 years of car ownership before that. The car has really made me learn automotive systems to track down problems.
The last big difference is stealth. The big wing and hood scope screams "punk" to a cop. Here in the Bay Area I'm just another luxury car that the cops don't look twice at.
So basically if you are a speed junkie go for the STi. You won't regret it and try not to have as much fun as I did
If this is your daily go for a S4. I know if I had to buy a new car right now I would pick the S4. The only thing I miss at this point about the STi is the power, but as soon as I go stage 3 I won't be missing the STi too much.
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