Larry,
I agree with your assessment. Overall I believe the challenge both in the market place and in the engineering departments of Mercedes-Benz changed when more stuff was integrated into the car. The initial challenge, and the W123 series came at the end of this basic challenge, was to make a great, basic car. Later the challenge became to make a car with integrated systems, like air conditioning, and electrically operated doodads (seats, windows, sunroofs, and so on), while adding safety equipment (air bags, anti-lock brakes) and meeting emissions requirements. The W123 series Diesels had a "get out jail free" card on emissions.

All this added equipment and regulatory performance mandated a new allocation of MB resources and the basic machine suffered. This happened, in my opinion, independent of Lexus, Infinity and Acura mounting a new challenge. The result is a machine with some of the old flashes of brilliance in terms of the basic machine, but many more compromises that really disturb guys like you and me. But those flashes of brilliant design, manufacturing and assembly capabilities keep me addicted.

In my opinion the flashes are getting fewer and further between with the later cars. The W210 E300D Turbodiesel is an example. If the power plant didn't exist, the car would not represent much more than what other makers offer, and some with greater reliability. I hope Mercedes recognizes the issue, but the shorter development time between models, and the proliferation of models makes me wonder. But then again, maybe we are the oddballs here, expecting cars to last half a million miles without having every part replaced a couple of times along the way. I like the new products and look forward to the new E320 CDI TurboDiesel. My 1998 will be my advisor in this issue. If it turns into a huge money hole, I am probably going to find another make. Or stick to old MBs. Good luck, Jim

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Own:
1986 Euro 190E 2.3-16 (291,000 miles),
1998 E300D TurboDiesel, 231,000 miles -purchased with 45,000,
1988 300E 5-speed 252,000 miles,
1983 240D 4-speed, purchased w/136,000, now with 222,000 miles.
2009 ML320CDI Bluetec, 89,000 miles

Owned:
1971 220D (250,000 miles plus, sold to father-in-law),
1975 240D (245,000 miles - died of body rot),
1991 350SD (176,560 miles, weakest Benz I have owned),
1999 C230 Sport (45,400 miles),
1982 240D (321,000 miles, put to sleep)