Hmm... Perhaps it's the fact that Pathfinder intends to use it that is different.
3.5 did use it, just not frequently. Whips entangled. Kelpstrand spell from Spell Compendium entangles, as does Entangling Staff. There is a level 4 Devoted Spirit maneuver that entangles. I'm sure there's many more examples besides those.
I don't like the pathfinder version, it's just a straight nerf. Congratulations? It's not doing anything new or different, they just based all the DCs on save DC, something I'm wary of. Makes scrolls a lot more useless, makes DCs potentially a joke, or if you buff the hell out of save DC, possibly higher. The 1 point of damage thing is completely negligible, except maybe at level 1 against someone with low HD, low con, or already about ready to keel over from wounds.
Entangle's balancing points are the restricted usage and the area. The restrictions are a fine balancing point. They are not as arbitrary or small as "black dragons named bob," it covers a fair area of geography, though a small proportion of the kinds most parties tend to adventure on (IME fully 75% of the battles I've run or been in, Entangle would be useless). It is also not arbitrary. It is a spell only for Druids and Rangers, who are supposed to be at the advantage in "natural settings" (specifically ones with an abundance of plant and animal life). It makes sense to have a spell that aside from needing plants to work is very strong for its level. IMHO, it's the only decent level 1 Druid spell in core, too... That and Cure Light, I guess.
The area is actually a balancing point because it's unnecessarily big. The radius is so large that it will often hinder your own party, making it even more difficult to use effectively.