Test drove MB C350, Caddy CTS, Infiniti G37, M35X, Jag XF. All great cars however for me the IS 350 had the most bang for the buck. It is very fast, (5.1 secs 0-60), handling and quality are awesome and Smokey Granite Mica paint with light gray interior is absolutely gorgeous IMO. The ride is a little harsher as the suspension was returned for 2009, however the handling makes up for it and is never too harsh. AND Ive been averaging 25 MPG about 50/50% city/hwy driving. My Infiniti G35C only Avg 21 MPG... I made the right decision, a lot of car for the money!
All the gizmos are cool too... adaptive HID headlights that steer with the car, paddle shifters, push button start/keyless entry (just touch the handle), 13 speaker stereo, air cooled seats, backup camera, park assist, voice activated commands list goes on and on. Highly recommend!
No memory seats and power telescoping wheel as standard features. The rear seat is also a bit tight for leg room (although my four year old fits fine back there). Nav is DVD based vs. hard drive based models on some of its competitors. AWD may have been a nice option for the 350.