I've had the time to ponder this now. Finally made some observations.
1) I have found that the Psylo I'm running right now feels alot more nimble than the Z1. Between the 80mm and the 125mm settings it just steers alot quicker, which I really like.
2)Despite being a little bit more narrower than the 2004 Z1, my psylo can fit a bigger tire on it than I could with the Z1. On the Z1, a 26x2.5 michelin fit in the Z1 by a very small bit. With the psylo, it makes the comp 24.1 I run on front look like a small xc tire.
3)Adjustment: The 2004 Z1 has no travel Adjustment. I have 80-125mm of travel with the Psylo, well worth the sacrifice of 5 mm of travel.
4)My psylo is a lot stiffer than the Z1 I had on it.
5)The ride height difference is astounding. The Z1 was a "little" too high for me.
6)The weight difference is really noticeable. It used to be a little bit tricky to get the front wheel off the ground due to the weight of the Z1.
7)Can finally run a regular old fender again when it's really muddy out. Don't have to use that PITA integrated fender anymore that has to be attached on by bolts.
I still like my Z1, it just did not feel right on the hardtail for me.