Well I've never played w1 so can't comment, w2 was my first world, and then I joined w3 at start up. In terms of gameplay I actually prefer w2 overall, although I can see why many prefer w3. The issue of archers/MA is interesting in the sense that yes, many experienced players who previously played worlds where they didn't exist dislike them or ignore them completely (often to their cost I believe). For me the added calculation of their worth makes both defence and offence more interesting. As to pally's, my views are a bit more mixed. Again, they definately add some interest when it comes to guessing what offensive weapon in particular would be most useful, or when multiple pallys stack with various defensive weapons, but I do think they can make a fairly bad player too good in terms of defense if they happen to have the Bonfire, for example.
Also, while I know that a lot of differences arise due to the contrast between a new and a old world (regardless of game settings), I really found that w2 is more strategic if you know what I mean? I don't think this is due to game speed alone, but there is more longer-term war planning and more diplomacy in w2, wheras my experience of w3 was it was far more aggressively attack based (and don't get me wrong, I do see the attractions of that), which when combined with the faster game speed and the closer positioning of villages (over-crowding was virtually everywhere making farming very difficult) meant that overall I do think it suits the very active players more...
Del.