While I own two model 2's and like the model 2 for its stereo sound output, I actually prefer the model 1 in terms of its design. I just prefer the power switch and reset button on the model 1, as they're designed better than those on the model 2 and are less prone to malfunctioning. (I have a model 2 whose reset button is somehow just completely screwed up.) I own a single model 1, which I have yet to even hook up. (I recently found it, thanks to your Craigslist article.)
When I was gaming on a mono-TV long, long ago, I preferred the model-1 because I could hook up some little stereo speakers.
The 2nd version is what I like best 'cause the styling is nice and balanced and it's significantly smaller and lighter (while still keeping stereo sound - unlike the Genny3).
Model 1 has always been my favorite. I never had the model 2, but I remember when it came out I thought it was pretty ugly. To get stereo sound I just use the mixing cable into my sega cd and then use the rca cables from it to my sound system.
C64, Genesis Model 1, Sega CD Model 1, 32x, Nintendo, Super Nintendo, N64, Saturn, Dreamcast Sports, Xbox, Xbox 360
I have a model 2 now but I honestly miss my Model1, being able to use headphones was nice and it had a much more "retro" feel to it. Welp take what you can get I suppose.
Overall I like the model 2 best. I like the design of the model 1, but my genny is always hooked up to my model 2 sega cd and together they look sleek. The model 2 does seem more flimsy, but the one I use is my girlfrieds and she's had it since it came out. It loads games on the first try every time. Plus I like the little red light between the power and reset buttons, it's a nice touch.