As MightySubie mentioned I have some experiance with this. There have been some good posts, and some..less good ones that I read. Anyone can tell you to be a better driver. That has nothing to do with the performance of your car. We all know people with Sti's who have no idea how to drive, and people with 1.8 impreza's that are amazing. My feeling is that the posters true question is what to do with what rout to go to increase the performance of his car.
Owning a 05 RS, the first thing I would say is that it is MUCH cheaper to upgrade the handling and braking than the power. It's amazing how much more fun it is to drive with a good set of 06+ wrx struts and springs, and upgraded brakes. Additionally all of these parts are compatable with an older wrx if you do deside to get a new car.
The path of buying a wrx or upgrading the power of your RS is a persinal one. Truth be told, it depends on what you plan on doing. If you want another 30-40 HP, you can get a set of good cams for cheap from delta, upgrade your intake and exaust, and get a tactrix cable (05+ RS's are open sourse) and get around 200 without to much trouble. No need to play with the engine, and definitly noticible. If your looking for WRX power...get a wrx. the RS block is not designed to take boost, and turbo kits can only get up to around 6 psi safely, for maybe 210-220 hp. The cost involved in this level of power just isn't worth it.
If your very mechanically savy, or have friends who are, and are looking at building a bunch of power, it is possible to make amazing power out of the stock configuration. RS heads flow very well. But you need to look at all of the systems that need to be upgraded for the HP. First, you need a 2.5 WRX or Sti block, and a set of forged SOHC pistons. That block, with those pistons, are capable or taking tons of power. Then the heads have to be gone over, the valve springs woun't take the power, they need to be replaced. Also, the camshafts should be upgraded. Then you just need a turbo kit. But wait...the transmission can't keep up with the power. You can upgrade the gears and redo the syncro's to 05+ legacy gt gears (which are the same as jdm sti). If you get all of this stuff at list price, and don't do the work yourself, your looking at 10K+, but you do get a much better system than a stock wrx. I got just about everything at significantly less than that, and I plan on doing most of the work myself. I guess the answer to your original question is that it is possible, but it depends on your ability as a mechanic, and what you want out of your car. I can answer that for you, but if you want any information about my plans, let me know.