Keep the G4 1.42 or Upgrade

Comments please on whether to keep or upgrade...
I have a G4 1.42 with 512mb ram, 80gig drive, BT, 802.11 and DVD writable drive. eBay market is getting anywhere from $280 to $350 for these systems. The system is slow and I'm sure a memory upgrade to a gig would help but I not sure if the if it is the right course. Are the current Mac Mini platforms leaps and bounds better than this system? Anyone here been in a similar situation?

Welcome to Apple Discussions!
Whether to upgrade or not is at least as much dependent on what you use the system for as it is to do with what the current range of minis are capable of. In performance terms, your 1.42 G4 mini is well behind the speed of even the entry-level mini at the current time, by a significant factor, but if you were primarily using it for email and web browsing, you wouldn't realize a major gain in performance by switching. Noticeable, but not major.
To put it in a broad perspective, the current minis are roughly equal to the overall performance of the dual processor G5 systems of 2 or 3 years ago - the systems that when your mini was costing around $650 with 512Mb RAM, were costing closer to $3000. Thus switching to an Intel mini would gain you somewhat more than double the overall performance, and then a bit more.
But it's not just speed that you need to consider, because Intel Macs require Intel-native applications in order to run at maximum efficiency. The software Apple supply is all Intel native of course, so if you use iLife, Safari, Mail etc, you'll certainly get the benefit. However, if you will need to run existing software which is not Intel native, then while these will run on the Intel platform, thanks to Rosetta, which in built in to MacOS, they'll run much more slowly than native software - probably not giving any improvement in performance over the 1.42 mini you have already. As such, you need to consider your software, and decide what, if anything, you might need to replace with newer versions in order to gain the benefits.
You can of course up your existing RAM to 1Gb, which will improve your G4 mini somewhat, and also either replace the internal drive with a 7200rpm device or add an external with a 7200rpm drive and use it to boot the system, in which case you will also gain improved performance. That would be the best option if you are tied to current software which is not Intel native, or need to use 'Classic' (OS9), which is not available on the Intel platform.
Overall though, in the simplest of terms, yes, the current Intel minis are leaps and bounds ahead of the original G4 models.

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