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The W124's AC/ACC system is not a paragon of reliability. The W210's system has failures of Evap Temp sensors, but the compressor unit seems to be pretty reliable. The newer variable pressure systems are more reliable than older MB AC systems.
I agree about the interior materials. Our now-sold 98 E300 was nicely "styled" inside, but the interior plastics were a grade below our C-Class.
Our E300 had a ton of problems, most related to the driveline and trim. My indie says he now has a solution for the constantly failing glow plugs, and perhaps I now regret selling the E300, as that particular problem was the main reason we got rid of the car.
Things I like about the W210 vs. the W124 is the backlit instrument panel (despite the absent oil pressure guage), front end style (I really do like the quad-eye look and think it's aging very well) and the general driving experience. The W210 front suspension is much better and the overall handling of the W210 is a great combination of supple ride and grip. It lacks the front end "bump steer" of the W124 and W201 strut style suspension.
The W124 has better plastics, better paint (though not environmentally friendly), and early versions were very light and very nimble cars.
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