Probably been discussed since the Moon has been around.. Which one is better. Motor/Chassis, etc. Not looking to buy or build a front runner, just a reliable good handling bike at a reasonable price. Handling preferred over power.
1st gen frame is better looking. Only ever rode a 1st gen, and man I loved than bike. Could do no wrong on that thing it seemed.
Gen 1 has round frame members and carbs, Gen 2 has angular frame members and EFI. Gen 1 has a 2 bulb taillight, Gen 2 has a 2-strip LED taillight.
The ergo's are slightly different. I'd describe the 2nd gen as taller and a little longer (seat, not frame geometry). There is something kinda special out of a 18 year old, clapped-out bike ( making 80 hp and available for $4k, with surfeit parts available) that can do 43's at Sears. While that says a whole lot about the rider, it also says something about the design and application.
USB cable or floats, needles, diaphragms and jets and other assorted fuckery? I've done it. If I have a choice, I wouldn't do it again.