You're right, the magical "power mode" button does not add 102 HP. I believe your salesman was invoking the "say anything to close a sale" technique. In my oppinion the button simply makes the accelerator more sensitive (among other things like higher shift points, etc).
I would say drive the 250 and see if it meets your needs. If it does, great. If it doesn't, then hold out for a 350. It sounds like you've already made up your mind as to what you want. Don't settle for something you don't.
If you've got some time to kill, go to the Lexus dealer and test drive a new 350. That will give you something to compare to the used 250's.
Good luck.