I used to have a W202 C250TD. It was an excellent and very comfortable long distance car. The post 97 (facelift) versions are nicer to drive and have better trim than the earlier ones and the V6 in the C240 is very smooth but thirsty if you push it (no surprise). I had no rust issues, but had a few problems with easily damaged paintwork which allegedly is common with later RHD W202s due to problems with the factory in South Africa. No problems other than that.
The steering and feel of the W202 is old school Mercedes which means smooth but rather indirect steering and softer suspension. I prefer this to the psuedo BMW feel and hard suspension of later models and it makes for a very relaxing drive, especially with an auto box.
I haven't heard of widespread ECU failures. Generally, ECUs are repairable and there is (here in Germany anyway) a whole cottage industry of small companies specialised in repairing ECUs as well as Bosch who will repair their own ECUs as well as those of other suppliers. I would guess in the UK it's probably similar. I read an article in a classic car magazine about the ECU repair market and apparently 60% of the ECUs sent for repair are not faulty, the fault is elsewhere either in the wiring, a connector or a sensor.
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