HI Matto))),
I definitely wouldn't say that 1st Gen "blows the 2nd Gen out of the water". They're different for sure, though. After reading everything on this board and a few other boards, like you, I was convinced that the 1st Gen was unquestionably superior, but I recently acquired both a 1st Gen and 2nd Gen, and it's like apples and oranges.
One isn't "better" than the other, but each one IS better at certain things than the other. It really depends on: 1) What sounds you're looking for, and; 2) What your ears tell you when you play both of them side by side.
The folks on this board are great sources of information, but don't take the hype too seriously. You might prefer a 2nd Gen. The 1st Gen is an amazing machine, but it's not the holy grail for everyone.