Thanks guys for your comments.

In my experience (89 260E then 95 E320), the build quality of the W124 has not gone down towards the late model years. I've actually found the 95 model a better car -- not because of the difference in trim levels, but because of updated parts.

An example is the upper radiator hose on my 89 260E, which broke and left me stranded. The hose connected the engine almost straight to the radiator, and I imagined this orientation would result in a lot of stress on the hose as the car accelerated/decelerated.

The replacement hose for the 89 260E had a 'curve' built in, the purpose of which I guess is to flex to reduce the aforementioned stress.

My 95 E320 had this 'curve' hose right from the factory.

Admittedly, I'm only basing on a very small sample of 2 cars. But whatever shortcuts MB had made, if indeed any, were too subtle for me to notice.