I have a 200XP, purchased in 1997. So far, the only problem I have had is the tachometer has failed, and the digital upgrade is a pain in the A. I would complain about it more, but I didn't get the replacement from the dealer, who states that I got the wrong one, so it's my own fault. (he's right!)
Great machine, nothing significant has ever failed on mine. I am still running on all the original bearings, clutch, hydraulic motors, & engine. I have never even had to fix a starter or alternator.
We rolled ours once, and had to fix the radiator and the discharge chute. I wouldn't blame Bandit for that.
Check the whole machine carefully for structural cracks, that would be the best reason to dispose of one. Open up the disc chamber, and inspect carefully, especially for pockets beneath the knives. With enough use, they wear cupped shaped pockets that require drum replacement. This would be a LOT of wear before that would be necessary. Check for side-play on the disks, that will reveal a need for bearing replacement.
Look at the sidewalls of the sheaves that drive the disc. If they are cupped (rather than straight on the sides), they will eat more belts than you want to replace. Get new pulleys: problem solved.
Open the inspection window to the clutch, and look at the condition. The clutch should be rather difficult to engage (90# force on the clutch handle for my 200XP) before it locks in. If the design is the same as mine, it's pretty easy to adjust.
Look for welds or plates where previous damage has been done.
Jiggle the safeties while it is running, see if the machine shuts down when it shouldn't. Disconnect the safeties, to make sure they DO work. The safeties are pretty easy to fix, by the way, but they are prone to wearing out and needing replacement after 10 years of operation. We bypassed ours, as they only prevent idiots from starting the engine with the chipping chamber open.
I won't go into how to inspect an engine for problems, mine has an 80hp John Deere engine.