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I used to have both A500 and A1000. Here are some differences:
A1000 has detachable Keyboard, A500 doesn't. You can slam A1000's keyboard as much as you like, without a fear that you will damage the mainboard.
A1000 can load any KickStart ROM, including Pre 1.0 (0.7), 1.1, 1.2, 1.3, 1.4, Atari TOS, and still use it with 256 KB of memory.
A1000 has color composite output, A500 has monochrome.
A1000's color output from the Composite cable is much more 'clean' than the color composite output from RF modulator of A500.
A1000 uses built-in Power Supply Unit, it is external in the A500.
A1000 was designed by the original Amiga team, while the A500 was designed by slightly different team. Hence the A500 is more up to date for late 1980-ies, including more fashion (ala 80-ies) design, better keyboard and improved cooling.
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