I had a chance to drive a '94 E320 for a few days down in Texas and liked it. It was peppy, tight (I think car had only 70k miles) and handled well. I thougth it was a bit louder than my 560SEL, but not dramatic. It wasn't as mooshy as my 560 and took the corners better -- (naturally).
The 560 is dead quiet at idle and sometimes I think the motor has died!
Besides the annoying rocker arm racket, I don't have many complaints.
Performance wise 0-60 and 1/4 miles are prob similiar (7.5 sec and 15.5 secs respectively), but the bigger W126 isolates you more so you have to watch yourself if you have a lead-foot.
Well, back to wife's dinner party... I got to escape for a few mins.