[Bring_Back_Shantz]

I've never ridden a FZ1.

That being said being an inline 4 I'd imagine the FZ1 is a little more snappy than the MT-01.

Keep in mind that the MT-01 only makes ~ 90 HP, but the torque curve is pretty much flat, so the throttle response is more like a really big cruiser than a sport bike.
It'll accelerate at pretty much the same pace all through the RPM range (and let's be clear, it's a pretty good pace), but you wont get that crazy kick in the ass at 10000 RPM that the sport bikes will give you. It's a different feel, but I love it.
As for handling, I haven't had any problem keeping up in the corners with my buddy on his VFR so it probably handles well enough that about 90% of riders won't be using it all.
The only real issue I have with it is that the top speed could be better.
I've gotten up to 208 km/h and that was all it could do, so the FZ1 will have it way outclassed in that category.
I know I'll never have to go that fast, but it'd be nice to be able to if I wanted to.

It's a niche bike.
If you are looking for a pure sport bike it isn't gonna impress you. But if you want something unique that is really fun to ride it's a great bike.
That all being said it is NOT worth the $16000 MSRP. I got a really good deal on a new 2006 right out of the crate last year ($10000) and I'm happy with it, so if you want one, look used, or for a new one that is a few years old (there are still a few in town).