Front Air Bag problems of the 2000 Subaru Outback

Brake pedal goes 1/2 way down before brakes engage at all. Pedal can be pushed to floor without much effort by my 120lb wife. Abs did not engage. Neither airbag deployed - impact speed was 30 to 35 mph. Dealer insists brakes are ok. 2001 model has 13 inch discs and it stops great! (our rental is a 2001 Outback wagon). We love the car, it just worries us that it doesn't stopproperly and the airbags don't go off - apparently the 'computer' deemed it "unecessary" although it was a head-on, smack in the middle of the front, collision!.