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If the price differential is reasonable, go for it. If it costs twice as much as 512k, I'd pass unless you are really that much in need of a greater download speed.
Hehe, kazaa is going downhill fast, but for all the others you should get a nice 120kb/s - this is basically clear TV and audio pictures, music downloading quite a bit faster than you can play it...
If I had the chance to upgrade, I would, but I don't.
With high speeds you can download things like Linux distros (1-3 Gigabytes) in an hour or two, 10M files only take a few seconds.
The main limitation is how fast the servers will upload to your machine, many of them throttle the output, with P2P stuff like audiognome the speed limit comes from the other party's upload limits.
512, 1M, or 3M all have serious restrictions on upload speeds, usually run about 128 K, only SDSL as far as I know have equal up and download speeds.
Also, another aspect of a faster download is better multitasking. For instance - with your 512k - if you were downloading quite a few songs in your P2P programs - your browsing may be slower and you probably won't be viewing too many high quality streaming videos while you download your music. But, if you upgrade to a 1M connection (assuming you DO get the extra speed) you'll be able to download your music PLUS watch your streaming videos at the same time.