I have the XSi and am very pleased with it. True, the kit lens doesn't perform like the "L" lenses, but it's what, $100 more than the body-only?
For EF-S bodies, the 17-55mm f/2.8 gets reviews that compare it to "L" lenses, by the way. But it will cost you more than the body itself. The Tamron 17-50mm f/2.8 also gets good reviews, but has no image stabilizer.
Anyway, I'd imagine that the T1 would only be better than mine, since as mentioned, it has the 50D sensor (DIGIC IV instead of III). So I say go for it! And check out
http://photography-on-the.net/forum/