I have both games, but I appear to be in the minority from what I can gather, as most seem to prefer the second iteration.

What are goggers thoughts on this?

It seems that Torchlight 2 is a bit more polished (in general), but seriously lacks any character customization at all. In Torchlight 1 - you could attain any skill (if you wanted), whereas in Torchlight 2 you get class-skills *only* and most of them are little more than slightly modified versions of the previous skill (especially true with spells). On top of that the skill ratings and how they are used, along with stats - are little more than
Your Level = X, your Stat = X + Y, Your skill = X + Y + Z. With a linear bonus per "level". Boring as f**k if you ask me.

I haven't completed either of the Torchlight's, but have played more Torchlight 1 than 2. I really couldn't get into Torchlight 2 with the "further streamlined (and dumbed down)" player mechanics.

I haven't played Torchlight 2 since it's not yet available DRM-free, so for now, the first game wins my preference.

I feel like you might be mischaracterizing the Torchlight 1 skill system... the two systems aren't all that different, with the exception that a few skills (not that many) in TL1 were shared between classes. It's worth mentioning the ones that were shared weren't actual usable abilities; they were the boring passive skills, like +% to block, or +% to crit, or decreasing vendor prices.
TL2's design was meant to get away from that, partly by the removal of those kinds of "pure stat increase" skills, and partly by making each class more unique and distinct from the rest. I know there were a few people who preferred the idea of certain shared skills between classes, but there very definitely was never a way for one class to get "any" skill.
I never felt like TL2 skills were slightly modified versions of previous skills, but admittedly that could depend on which class you played. I mostly played Outlander and Engineer, and their skills felt pretty varied to me.

I'm not really sure what you mean about the X + Y + Z part. As far as I could tell, the basic way the stat increases worked was the same way as the first one -- get 5 points per level, assign them to whichever of the four stats you'd like to assign them.
The way the stats themselves worked was different, but I felt the new stats were mostly a marked improvement over TL1, since the first game encouraged you to pigeonhole yourself into one type of weapon (melee physical, ranged physical, or magic), while with the second one all of the stats were more useful to a variety of weapons and builds.

The DRM isn't that bad. You need to log onto start the game but not play it.

That being said it IS DRM. :P I myself normally don't go near that route either but this game has headcrabs! XD I can tolerate a little login screen for that.

That's very bad to me. Not "that bad" would be a CD check or a serial number.

Because when I buy a game, I don't like to be dependable of an internet connection and a third-party server in order to install and/or play it.

They are equal for me. I can't pick a favorite. I agree, I thought it was a great improvement. It allowed a much larger range of unique builds. For example - It is much easier to build a character that can use melee and ranged weapons effectively. This was really difficult in TL1.
I like the new mechanics like Execute and Charge. And I love the new weapons - claws, shotgonnes, great weapons, and cannons.
I like multiplayer (even though I usually play solo, the MP is great.)
I like how fast the character moves.

On the other hand...
I enjoyed gem crafting more in TL1. (Not that it is bad in TL2, I just had more fun with it in TL1.)
I also liked enchanting more in TL1. Enchanting in TL2 is low risk, but the enchantments are usually kinda weak, and you can only enchant something a few times. I enjoyed enchanting in TL1 more - high risk, but usually higher rewards.
But the biggest thing - I liked the size and atmosphere of TL1 better. I preferred the single town with endless dark dungeons. I liked the feeling of being secluded in a small place. (I usually feel the opposite way in games, but it just worked for me)

Then again... Is a really good point.

All in all, they are both excellent games. Extremely similar, but plenty of (mostly small) differences.
Both are equally fun to me, and equally rewarding.
I cannot call either one better or worse. They are just great.

You need internet access to initially register your TL2 serial code only. Logging in to your game account is strictly for multiplayer -- it isn't the least bit necessary for single player. A lot of people definitely agreed with you on those points. I think your third one in particular is a very good point -- there was something that felt a little "diluted" for lack of a better term with TL2's story and atmosphere, compared to TL1.

I cannot play without logging in. Tried it multiple times. I can log out right after, but must log in.

TL2 disappoints in that I really enjoyed being a long-range physical damage character in T1, using rifles, and there are no rifles in TL2. Shotguns and cannons are both short-range. If I wanted short-range, I'd create a melee character. Additionally, the stats for a shooter require an enormous concentration on dexterity in order to equip level-appropriate guns. That creates a character with very narrow abilities, even more so than a would-be sniper had in TL1.

That said, both games are a lot of fun. I still enjoy the "fame" system and the ability to play randomized dungeons outside the game. As usual, my equipment averages out to 20 levels behind my character, so while loot is plentiful, upgrades are very few and far between, keeping the game a challenge.

My favorite character, though, comes from a mod -- the necromancer. I find mods necessary because I cannot abide the tiny stashes this time gives you at the same time it creates sets and set bonuses to mix and match. There's not much point to throwing away loot in what is after all an extremely loot-centric type of game.

One thing I don't like about either game is that sometimes the monsters are stacked so heavily at the entrance to a level -- this seems especially the case with purchased maps -- that survival is simply an impossibility. All the more so if your character isn't fabulously armored with a very high health stat. Even chain-chugging potions, having your pet heal you when he can, and casting self-heals on yourself -- or alternatively/additionally going all out on attack, or having very high resistances and/or armor or defense stats on all your gear -- doesn't mean much when three boss-level characters attack you as soon as you zone in and the only way out is to run through them while they're hitting you into all their support staff, getting even more creatures attacking you. That's not to say one can't occasionally pull off something brilliant under ridiculously, absurdly unbalanced conditions, but after a certain point there's no point at all in having ambushes-on-entry so random that even multiple world-bosses can be up your snout as soon as you zone in. When there's no way to win and nothing to learn from losing, there's no challenge and, again, no point.

It's not a major flaw with the game ... it's just one dumb thing.

What I meant, (and it's been a while since I played now), you get ~3pts per level (linear progression) for Stats/Skills.

So linear progression of Stats and Skills, against Mobs that are tuned for your level and you wind up with a difficulty level that is about the same from beginning to end. If you don't vary your stat increases, your stats would be basically equal to your level.

Perhaps I just feel its a poor RPG system, that allows little variation in the end. Also the stats aren't really stats in the traditional RPG sense, they just increase passive abilities linearly point for point.

As well, like a previous poster, TL2 just felt off compared to TL1 - it felt like you were pigeonholed (which that appears to not be the case) and for some reason didn't have that feeling of "fun".

I have both games and prefer T1 as well. I tried to complete T2 twice and lost interest before the end. I'm currently on aproximately my 10th play-through of T1.

The spells feel samey and not satisfying at all in T2 (i'm always a mage character). I love the lightning bolt spell from T1 and the ember lance. The summons spells too. The spells feel so different to each other and have different situations to use them in.
In T2 it just feels like i pull out a list of area affect spells and go down the list with each major encounter, and none of them have that feeling of massive impact like the thunderbolt or ember lance spell from T1.

I like being a mage with a proper long range gun in T1 that i try to enchant with health stealing and mana stealing. Can't do that in T2.

I miss the enchantment system of T1.

Mentioned above but i really miss the minion summoning abilities of the mage in T1 when i'm playing T2.

Apart from the size and variety of the maps in T2, there's nothing i can think of that i like more about T2 :(
That's not to say i hate T2 or that i won't play it again. I just think T1 was almost perfect in game-balance and combat feel and it just feels so much more fun annihilating packs of monsters.

Played both, liked both. Cons and pro's on both.

For Steam reasons I prefer Torchlight 1.

I only just started my first playthrough of TL2 with a ranged character. So far the crossbows seem to have a pretty long range. Maybe even longer than the first game, to compensate for the lack of rifles?

I'm not sure on the range. I might try a crossbow character just to find out, though. My understanding from a bit of reading is that ranged weapons characters are so narrowly focused on DEX in T2 that they become poorly rounded, which sounds unattractive to me.