First, I don't know if you actually mean trade-in to the dealer, or you mean you'll sell your Gen1 and then buy a Gen2. I always hate to hear of anyone trading in a car to the dealer. They're good at hiding it, but know that you're always getting screwed when you trade-in. Just sell the car yourself. The internet makes it very easy to do these days.
If you need more range and acceleration then go for the Gen2.
Personally I prefer the styling on the Gen1. The Gen2 looks too Civic-ish for me. And, as you say, reliability of the Gen2 hasn't been as excellent as the Gen1. But, the Gen1 is one of the best engineered cars ever made by anyone, and some lowering of standards was inevitable with the Gen2 to lower costs.
If you need more range and acceleration then go for the Gen2.
Personally I prefer the styling on the Gen1. The Gen2 looks too Civic-ish for me. And, as you say, reliability of the Gen2 hasn't been as excellent as the Gen1. But, the Gen1 is one of the best engineered cars ever made by anyone, and some lowering of standards was inevitable with the Gen2 to lower costs.