I don't have one, but I did find these reviews (which are 11 years old!) of it:
http://www.lovestoquilt.com/print.as...t/030707_a.asp
http://quiltersreview.com/index.php/...achine-part-2/
It sounds like a very good machine, but I think you are wise to ask about downloadability of embroidery patterns. I'm thinking for $800 you could use it simply as a very good sewing machine. My Bernina 1230, which is 15+ years old and has decorative stitches but does not do embroidery, still sells on eBay for about $800.
I did find this closed listing on eBay for the 165E (for $900):
http://www.ebay.com/sch/i.html?_saca...mplete=1&rt=nc
so I think your dh got a reasonable deal.