Limited Edition / Special Edition usually signals the end of the current model maybe theres a new model on the horizon ? My old 202 C class was a limited edition it was only a Classic but had everything the avantgarde had + a bit more . I can't for the life of me remember what it was actually called but it was rather nice and looked stunning in obsidian black and limited edition alloys .Three months later the new model 203 was announced.
All the 204s are like that though. The 211 is much nicer IMHO inside but its all solid stuff in the 204 and bar the dash is the only negative thing in there. Its not really any worse than its main competitor inside, the 3 series BMW.
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