I've asked myself the very same question about a year and a half ago.
My 260E has not some 400,000k on the clock......
I decided to put about $4,000. worth of fixes on it and dropped the idea of going to a 2001 E320.
I've never regretted it
Since I had it done (Oct 2006), I've spent less than $100. on repair outside the nromal maintenance items (Oil changes, wiper blades, and things of that nature