I used to do 1.5 gallon batches and to me they were fun but for the time invested and the overall cost, I think it's better to do atleast 2.5 gallon batches. I'd have to look back at my notes to give you real figures but to brew a 1.5 gallon batch, it might have been a few dollars less than doing a 3 gallon batch. And then, when you create an amazing recipe, you only have 10-12 beers and trying to scale it up isn't as straight forward when going from 1 to 5 gallons, IMO.
That being said, you get to brew more, play more, and have many different beers available...So, it's a toss up. I say go for it.
I made markings on my mash paddle since I was using the same pot we cooked our Sunday sauce in and it didn't have volume markers.
I also stuck to dry yeasts so that I could use half a pack and seal the remainder up for next time as yeast will be the most costly part of small batches if you're buying fresh yeast each time.
If will try to think of other tips that were helpful to me.