You get a lot of value for the money with a C class. I bought a C class in 1999 for the same price as the 2008 - both cars with all of the options.
Frankly, I don't know how they can afford to sell this car for so little. The C class is an entry level Mercedes, sort of an 'economy' version. Most people don't care about leather vs. MBtex, since the MBtex is a high quality material. For the few people who DO care, just pay the extra $$ and get it.