Need some quick advice!

I am in the market for my very first embroidery machine. I have been sewing for more years than I want to confess (haha) and am just starting my own home based business. Most of the designs I plan to embroider will most likely be smaller designs as well as personlizing items such as baby/children's clothing, etc. I also want to be able to embroider on caps - especially child-sized ball caps.
Here is my dilemna - in my search for the perfect machine I have come across a Janome MC 11000 for a very good price - around $4000. I originally had planned on purchasing the Janome 350e which I can get for $1300. My question is this - is the Janome 11000 really worth the additional $2700 over the Janome 350e? Any help would be GREATLY appreciated!!

I have the Janome 300E (the model before the 350)...while it works fine, I doubt you'll be able to do ANY caps on it...I have the hat hoop and 5 years of home embroidery experience and have NEVER done a successful cap.

The ONLY difference between the Janome 11000 and the 350E is that the 11000 also sews. The embroidery part is identical for these machine.