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I haven't used either for hosting, but have used both for registrations.
I like private domain registration and 1and1 is much cheaper, it's included with the domain. But like a dummy I didn't read the fine print until much later, and any postal mail sent to the private registry will be forwarded to you at a cost of $5 per item. I hope I don't get any unwanted solicitations.
GoDaddy charges an additional 6 or more dollars for private registration. But doesn't charge for mail forwarding as far as I can tell. I won't know who is cheaper till I see if I get stuck with a forwarding bill.
Godaddy's cpanel is much easier to use, you can set all the name servers the same rather than individually. And as was mentioned earlier it's all instantaneous, rather than waiting 6 or more hours with 1and1.
I would say 1and1 looks initially to be the $ value, but Godaddy has them beat in service, and possibly long term $ value.
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