There is nothing at all wrong--and a lot very much right--with a Type 1 motor in a Speedie. If I had a Speedster I would probably choose a Type 1 just for the "born-that-way" factor.
The Suby engine actually weighs about 20-50 pounds more than a Type 1 engine (depending how they are fitted out, respectively), so a high-riding car is so because of something other than engine weight. As you know, the torsion springs on a VW are indexed and adjustable in approximately 3/8-inch increments. You can set her down in a weekend on your first try, I hear. Though the job is a bit tricky.
If a Soob-powered VW-based car is ass-high and it's not an accident, that means the engine has either a stock Soob oil pan or a deep sump aftermarket model (though why anyone would put a deeper pan on a VW-ensconced EJ motor I have no idea).
The stock Suby pan requires about three inches more leg room than a stock Type 1 engine would.
On Most Speedsters, this should not matter. David Stroud installed his Suby with the original pan and his ride height is fine--something close to stock VW, or maybe stock Speedster.
For those who like the in-the-weeds stance, the fix is the Small Car Performance Subaru oil pan. Spendy at about $350, but it gets you back to within about an inch of the Type 1 underhang.
I used on on my build and have about 6 inches under my pan. The lowest spot under Bridget now is a cross brace under the middle of the pan that hangs about 5 inches from the floor when no one is in the car.