While I cannot comment on the 1000D I do have both the 400D, which is almost identical to the 1000D when it comes to ISO, and the 7D and the difference between the two is staggering. First off the 1000D/400D has a max ISO of 1600 where as the 7D goes to 12800. In real terms there is at least a two stop improvement, if not more, when it comes to using that higher ISO.
I have not looked at the image quality difference in great detail, so I'll defer to those with actual experience with both the 1000D and the 60D, for example. When I said there is a 0.5 stop difference between the 1000D and the 60D, I was referring to the dynamic range figures posted on sensorgen.info --- not the most reliable source, I'll admit. Still, it is unlikely that the real world dynamic range difference would be 1 stop; it is likely to be closer to 0.5 stop.
Just be careful to not confuse the manufacturer's max ISO with actual performance. On a digital sensor, the ISO setting is just the gain on the amplifier between the photodetector (sensor element) and the analogue-to-digital converter. The noise (photon shot noise, specifically) is amplified along with the signal, with the relationship becoming very close to linear at higher ISO settings. For example, take a look at Bill Claff's
charts. Select the 7D. Notice how the dynamic range at ISO 3200 is 5.04 bits (stops), followed by ISO 6400 with 4.04 stops, and ISO 12800 at 3.08 stops. For every doubling in ISO (hence doubling in amplification of the analogue signal), the actual dynamic range (difference between noise level and signal level) halves (i.e., decreases by 1 stop).
Now for the tricky part: notice that the actual dynamic range is quite small compared to the ADC resolution, e.g., at ISO 3200 we only use about 5 bits out of the available 14 bits (or is it 12 bits on 7D?). This tells us that we can simulate higher ISO values by underexposing on purpose, and pulling up the brightness in post. Try the following experiment: Set the camera to ISO 6400, and meter a scene in aperture priority. Take a shot, switch to ISO 3200 and manual mode. Use the same shutter speed that the camera metered for the ISO 6400 shot, take the shot. Now open the raw image of both the ISO 6400 shot and the ISO 3200 shot in your favourite raw editor. Pull up the underexposed ISO 3200 shot by one stop, which should give you an image that has the same apparent brightness (exposure) as the ISO 6400 shot. You should see that the apparent noise is almost identical (although at some point the quantization noise will start to dominate).
So why do manufacturers enable higher ISO settings on newer bodies? Take the 700D, which now has an 12800 setting that the 600D did not have. We know that the sensors on the 700D and the 600D are virtually identical (except for the on-sensor phase-detection AF sensors introduced with the 650D). But the 700D has the new Digic sensor (V versus IV, I think?). So what has happened is that they use the increased processing power of the new processor to implement better (but slower) noise reduction algorithms on the 700D. This allows you to pull more usable ISO 12800
JPEG shots from the 700D, compared to the 600D which had less advanced noise reduction algorithms (speculation on my part, I must admit), hence they limited the 600D to ISO 6400 (or whatever).
But this only applies to OOC JPEG shots
My experiment above should be repeatable across the 600D and the 700D, i.e., if you shoot in raw, then a 1-stop underexposed ISO 6400 shot on the 600D, pulled up by 1 stop in post, would be nearly identical to an ISO 12800 shot on the 700D.
The situation becomes a little more complicated on some brands, e.g., Pentax does some noise reduction even on raw files, but as far as I know neither Canon nor Nikon tamper with the raw files (other than hot-pixel suppression).
The 60D/7D also uses the newer Digic IV processor (dual processors in the 7D) as compared to the 1000D's Digic III.
This does not affect the quality of raw files, only JPEGs. See argument above.
Recommending fast glass is great but shooting wide open because you have to is not the same as doing it because you want to. A razor thin DOF should be an artistic choice, not an necessity. That's where the improved high ISO of the newer bodies comes into play
No argument there. I guess my main point was that you can explore a fast prime cheaply (~R1k), and see if that suits you.