I don't know either machine so can't be of much help with a comparison.
But here's some questions to ask yourself:
- how much do you think you would emboider?
- do you plan on selling or just as a hobby?
- what do you want to embroider - quilts, shirts, bags etc?
If budget is an issue and you only want it as a hobby, I'd get the 350E. If you find it's a hobby you'd like to pursue further, you can always upgrade
Digitizing is not very simple or straightforward. Very simple designs, yes. Something more complex...well, there's a learning curve. There are so many nice emrboidery designs out there that you can almost always find something you like. There's also the cost of the software to factor in if you want to digitize (which is NOT cheap). There is an auto digitize function, but unless it's a VERY simple design, it's crap!