I just did something similar to what the original poster is considering - went from a 1997 Corolla CE to a 2009 (LE in my case). It feels a good bit roomier inside - except for possibly the headroom "feels" like a little less, but it might just be me. Performance wise, the new 1.8 liter engine seems to be a good bit smoother on uptake and cruising than my old Corolla. I used to easily roll to a stop by getting off the gas pedal and letting the engine wind down. Doesn't work quite as well in the new car as it doesn't seem to lose steam as quickly.
Fuel economy on the 1.8 liter lead me in that direction vs the 2.4 liter (which is the same as in the Scion Tc I believe which is another model I considered as I liked it over the Corolla S). I put 239k on the 1997 Corolla, so I went with the 1.8 liter engine in the end - in the first 200 or so miles of break in I'm getting 38.2 MPG which I'm happy with. This is about 50/50 highway driving. Typically I do 90% highway, so I'm hoping to do 40 MPG consistently once I'm through the break in. Glad I went with the Corolla again. I like that it feels comfortable and a lot like what I was used to driving. Creature of habit I guess.
