Digital cameras: So did I downgrade?

Depends on what features you need

The major difference is the more expensive SD1000 is smaller, lighter, and "hipper" than the slightly larger, heavier A470.

The two cameras in question appear to have the same sensor. Sensor size, pixel density, ISO sensitivity, etc.. are identical in the specs.

The zoom on the A470 runs from 38-132, while the SD1000 is 35-105, so the A470 has a longer reach on the telephoto end while sacrificing just a tad on the wide angle. Accordingly, the maximum aperture on the wider SD1000 is slightly faster (f2.8) than the A470 (f3.0). At maximum zoom the A470 (f5.8) is slower than the SD1000 (f4.9), but that is mostly due to the longer focal length. One would expect the A470 zoomed to a 105 focal length would have a maximum aperture comparable to the SD1000's 4.9.

Look at them side by side here:

http://www.dpreview.com/reviews/compare_post.asp?method=sidebyside&cameras=canon_a470%2Ccanon_sd1000&show=all

The only real performance difference is in the frame rate for movie mode. The SD1000 can shoot 640x480 at 30 or 15 fps, while the A470 only offers 20fps. Similarly, The SD1000 can shoot 320x240 at 60/30/15 fps while the A470 only can at 30fps. But neither cameras video performance is more than basic compared to any low end video camera.

So, what you gained in the A470 was a 3.5x as compared to a 3x zoom, and you gave up the "style" of carrying around the slightly smaller and sexier SD1000. If both cameras are used in "Auto Everything" mode, I doubt there would be any perceptible difference in the quality of the photos produced between the two.