Although one is "technically" a continuation of the other they are very different and continued by different people so it isn't a good idea to keep them classed as just different versions as they are by all acounts different programs.
I don't think I can agree with that. Both UADE 1.x and 2.x have been developed by Heikki Orsila (and possibly some other people), the codebase is largely the same and the 1.x line is not being developed anymore. If I'm wrong about any of the above, please provide links to the relevant information.
Have you used them both? They both have different support, work in very different ways (2 doesn't have a GUI and uses config files where as 1 is the opposite). But it's your call.
Yes, I have used them both and I'm aware of some of the differences as far as the configuration and support for different players goes. If 1.x and 2.x were to be split into two separate packages, they would have to block each other. If one really needs to use 1.x, one can simply mask all versions >= 2.0. I'll make sure an ebuild for at least one version from the 1.x series remains in the tree for a while.