Their gears in their 1236 are absolutely NOT hardened. They ARE hardened on our PM-1340GT. Thats a good part of the price difference, besides the size, and the higher end chuck with the preferred package.
For hobby use, you would probably never notice it, but for heavier use, its worth the extra money.
Another difference is the stand we use is much heavier, we upgraded that about a year ago. Makes a big difference, (if you are going to get it with the stand) Its pretty much the same machine, yes, except maybe in the accessories, and our support.