[cookiemech]

This is basically the same engine that was used in the Echo for years, and which is currently used in the Scion xA and xB. I am not aware of any issues with the engine; some people find that the mass airflow sensor cruds up with a lot of mileage, but you can clean that rather easily. Valve clearance is done with shims, but they hold their clearances extremely well, as do most engines with that system. It has a timing chain rather than a belt, which is expected to last longer than a belt.

I think you're seeing a lot of automatics at the dealerships because that's what a lot of people buy, and of course the dealer makes a couple of bucks more on an automatic. My wife's Yaris is an automatic, and the gas mileage is right up there (it only has 3000 miles on it, but it gets ~34 mpg commuting in western PA, which is hilly and has a lot of stop signs). Of course, if you really enjoy shifting (I do), that is another consideration, but I'm no longer convinced that the manual transmission always gives better gas mileage.