My CW-80 is only a few months old -- got it with the NJ Transit Work Train starter set.
It replaced a Powermax that was making the loud fan whir, from an old 2008 Pennsylvania Flyer set that I bought used, to start my son and I out.
The Powermax still works but it has been mothballed.
The cost difference is actually in favor of MTH here - I was looking at the trains at MB Kleins (it's actually a LHS to me, being only 20 miles or so away) and they have the Lionel at $289 and the MTH PS3 at $269.
It DID say on the box that the MTH is supposed to smoke. My son is 2.5 and we like the smoking engines, houses, etc. that we have.
I'm not a fanboy of either, but I do have a significant Lionel investment in track and rolling stock (even though our layout is small) hence, that's why I wanted to make sure I wasn't getting something that wouldn't work with what we already have.
The remote control is kind of neat that the MTH comes with, but I like the Lionel passenger cars better -- the yellow and red striping down the train is more dramatic than plain aluminum.