My model one is in Chicago, and my PAL is here with me in Australia, so I haven't been able to do an A/B comparison. Or with my Model 88, which is in Canada. (Long story.) But based on my memory of how the Model One and the Model 88 sounded, here is what I think:
I would not buy a Model One instead of a PAL unless the wood finish was very important. The sound of the PAL strikes me as the same as the Model One in quality. The only differences are (1) the PAL seems a bit less loud, less room-filling than I remember the Model One (maybe to save battery power?) (2) my Model One sometimes had bass distortion that seemed like it was coming from the port; the PAL, not having a port, doesn't have that problem.
Take these with a grain of salt, because it's been so long since I've heard my Model One. Neither the Model One nor the PAL is a replacement for a real stereo, but both are terrific radios with wonderful sound that's easy on the ears, for use in those places where it's impractical to have a real stereo.
I am enjoying my PAL far more than I ever did my Model One, mostly because I'm enjoying it more often, because it is so portable. I can carry it with me as I move around, head out to the barbeque, etc. If the Model One has any sound advantages over the PAL, to me they are far outweighed by the convenience of the PAL.
As to the Model 88. Based on my memory again, it had more oomph, more bass, something closer to room-filling sound (though still no substitute for a pair of Paradigm Atoms, say, and an NAD receiver). But it's considerably bigger. And not portable.
Also, I just checked on the Cambridge Soundworks website, and couldn't find the Model 88. Does anyone know if it's been discontinued?
I also don't remember if the Model 88 CD (which is what I have) has an aux input. I use the Aux input on the PAL all the time with my iPod. That's a fabulous ultra-mini combination.