so 1e was poor schleps thrown into dangerous story encounters while 3e is crazy races and classes?
In my long term 1e campaign that lasted over 20 years the whole party for most of it was elves. All could see in the dark, move silently, had great stats, surprise abilities, and innately spotted any secret door. It was gritty at low levels but they got very powerful.
Now with the same group in 3.5 3/4 of them are playing humans. It is a high level game and again they are powerful.
There was plenty of wierdness in 1e and plenty of neat variant classes from Dragon, Oriental Adventures, Unearthed Arcana, etc.
The main differences I see are in consistent mechanics, tools for evaluating game balance, and a bunch more explicit number crunching for skills and temporary modifiers. This impacts party balance and DM adjudications, not really the wackiness of the races and classes allowed or the worlds that the stories are placed in.