Had a PSP 1003 before. Was expecting lower quality on this one because of the cheaper price. But it is superior in almost every way. It feels sturdier whilst being lighter and less chunky, has a matt black finish (so no more finger prints / scratches) and the screen is vibrant and crisp. Games load faster thanks to a nifty "UMD cache" feature and the disc drive is much quieter.
Only potential down side is lack of wi-fi and stereo speakers....but I hardly ever play games online and you can still download media from a PC and transfer across. Also, the speakers on the older PSP were so weedy and close together that the loss of a stereo soundscape is hardly noticeable. You still get stereo sound with headphones on the E1000.
Overall, if you're just after a fun, quality handheld that delivers gaming, movies and music on the go...then there's no need to pay more!