Have the prices of Gen1 gone up?? Thats a bonkers price whatever the answer though. I didn't pay anywhere near that for mine.
There's generally a big gap in the prices driven by a number of factors including the Gen2 having a) DFI engine with no major issues b) No IMS bearing to worry about c) Nicer and more modern black interior, and d) much rarer.
I'd pay 17k for that silver one, no more than that, then stick the rest in the bank as insurance (which is what I have done). A swanky leather dash and satnav won't stop you crying when you discover scored bores and need to fork out £10k for a new engine - and the ONLY warranty that will cover you is a Porsche warranty in that instance BTW, don't take BS from a dealer who reckons the warranty they sell will cover it because it most likely won't.
I'd never say don't bother with a Gen1, but if you have the budget for a Gen2 (I unfortunately didn't) then like people say above, it's a no-brainer. Go into it with your eyes wide open though if you do decide on a Gen1 is all I would say, make sure you pay the right price and have some money in reserve or insist on getting a Porsche warranty as part of the price you pay.