Post-job answers to my own questions. Went very smoothly. About 3 hours for me.
1. Should the procedure for this car be same as a 2004 Impreza Outback Sport?
Yes, but the video in Paulster2 post above is better. But unlike that video, there is a roll pin that holds the axle to the transmission in my car. You need to bang it out with some kind of punch (~5mm). One thing that held me up is that the holes will not line up if you push the transmission spline all the way into the axle. it needs to be pulled out about 3mm or so. Also note that the holes only line up in one orientation (out of 360 degrees): the spline is not perfectly symmetrical.
2.Should the axle nut be loosened before or after lifting the car?
After. You need someone to depress the brake.
3. Are the only bolts that need to be removed the ones holing the knuckle to the strut?
Remove the bolts that hold the brake and ABS lines to the strut. They hold the knuckle back and make it harder to remove/insert the axle.
4. Do both strut bolts need to be marked and replaced to ensure proper alignment?
Just the top.
5. How should I mark the bolts?
I took a picture with a smartphone and used the pre-fab markings on the bolt & strut to preserve the alignment. No need to make physical markings. The pre-fab ones are much more precise.
6. What can be used instead of a proper punch to remove the roll pins? How thin must it be?
A mechanic let me borrow a tool he made out of a cylinder head bolt, but I reckon one could use a 2-inch bolt of the proper diameter. Just buy a punch -- I got a set of punches and chisels for $15.
7. Any other advice?
This is a one-man job, except for loosening the axle nuts.
Have a breaker bar or extending pipe. Axle nuts in particular are on there real good.
You should have a torque wrench up to 200 ft/lbs for the axle nuts. They need to be cranked at about 170. If you don't have a torque wrench, 170 ft/lbs is like, really really a lot of ft/lbs. I am medium-strong man and it's about as hard I can torque.
Apparently you can remove the roll pin for the passenger side from inside the hood, but I didn't bother. You have to remove some other components, and it's not so hard to get at the pin from underneath, although it is definitely more difficult than the driver's side.