The Roku 1 has always been a curious box in Roku's lineup. When it launched, it wasn't quite as cheap as the (soon-to-be-discontinued) Roku LT and it's also lacking a standout step-up feature, like the headphone jack remote found on the Roku 2 ($80). Other than the boost to 1080p output over the Roku LT (which isn't particularly noticeable on most TVs), the wasn't much of a reason to buy the Roku 1.
Now the Roku 1's appeal is even less clear now that the company has introduced the new Roku Streaming Stick ($50). Sure, the Roku 1's price has been reduced to $50, but the Streaming Stick offers all the same features in a smaller package, plus it includes an RF remote, which means you don't need to point it at the box for it to work. The Streaming Stick will also support dual-band wireless and YouTube out-of-the-box; the Roku 1 and Roku 2 aren't slated to get YouTube support until later this year.
There are two main reasons you might opt for the Roku 1 over the new Streaming Stick. One is universal remote support. Standard IR-based universal remote controls won't work with the Streaming Stick because it's hidden behind your TV, so the Roku 1's traditional box is an advantage in that case. (However, Logitech has said it may add the ability to control Roku boxes over Wi-Fi on products that use the Harmony Hub, such as the Harmony Smart Control.)