Apart from USB host the only diff beteen C860 and C1000 are CPU & battery. Or are there any other diff?
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I would rate 'battery' as the strongest reason to get a C1000/C3x00 over a C860.
Rather... battery
age.
as Stu says:
The real reson that the C1000 is better than the C860 is that Sharp aren't making the C860 anymore.
Any C760/C860 you are going to find, will have a 2-year old battery, at least. Even a used C1000 is probably going to have a fresher one,
and I'd still advise buying a new unit to be safe. cpu, usb, keyboard, are all better with the newer models, but battery age will determine how much use you'll get out of it, until the Zaurus perishes.
(In general, batteries for newer models are electrically compatible with older models; but they are larger, and don't tend to fit-
so getting a new battery for an old unit may not be practicable)