Well, this is an easy question. No, 1e is not inferior to 3e. They are different. They have a different spirit in the rules, and they try to accomplish different things.
IMO, 3e tries to be a "everything to everyone" sort of game system. I think it succeeds admirably, and it "fixes" a lot of the "broken" rules of previous eds. OTOH, there is nothing that makes 3e an inherently more fun game to play than 1e. Concentrating on the rules sets ignores the finer points that a good DM and good setting with a good storyline makes the details of the rules much less important. Add to this that the rules are always just "suggestions", and we see that rules are really of secondary importance. Nonetheless, I have my favorite rules set, and it's not 3e. I like 3e sometimes. I like OD&D (not to be confused with Basic D&D, which is different) sometimes. But to my mind, the best version of D&D out there isn't D&D. It's HackMaster. It's a lot like 1e, but it's much better. Anyway, now that I've hijacked the thread, I'm going to sit back and watch the melee begin.