The M1XEP adds an ethernet port to the M1 for programming and control purposes. ie. You can program the M1 via ethernet TCP/IP rather than needing a serial port connection and it includes a web based keypad that you can use to arm/disarm/control the M1. The M1XEP also enables the M1 to send emails through to rules programming and to set its time from an internet NTP source.
The Elk IP232 is a more general purpose serial to Ethernet convertor. Elk initially created it to enable the M1 to control Russound Audio systems but have released new firmware which makes it quite useful for a number of tasks where an RS232 needs to be "extended" across Ethernet. It doesn't include the web control functions of the M1XEP nor allow the M1 to send emails.
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