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.