To the lame person which has the better hardware in terms of processing power & audio quality?
The AMS based players have better sound quality as measured by RMAA then any current rockbox targets. They also do not have the V1's disk access noise.
Processor-wise, they have a single core thats clocked at 200MHz vs. 2 at 80MHz.
I know the V2 port is a work in progress at the moment but when complete could the V2 be considered an upgrade from V1 is basically what I am asking.
I would consider it to be an upgrade, but it may be a while before battery life and features are on par with the V1 port. We'll probably have to tweak some of the codecs to get good battery life out of them, since theres never been an ARM9 target with IRAM (and the current ARM9 target is fast enough that it wasn't very interesting to optimize).