I found a lot to like about my 2006 IS350, despite the fact that the service department at Lexus of Northborough managed to put the rear wheels on the front front of the car while doing rotations on two separate service visits.
But I had issues: 1, suspension too soft and steering feel completely opaque; 2, overly intrusive skid and traction control; 3, inability to get up my steep driveway in the winter, despite a 17" wheel and Blizzak setup; 4, headaches with the TPMS every time I switched back and forth between winter summer wheels.
So this spring I traded up for a 2010 Audi S4. It's in a different league, which I suppose it should be for the added price, and I am one totally satisfied customer. Maybe things will be different when the warranty and prepaid service run out, but even if it ends up costing more to keep running it will be worth it. Just about every single thing is better. Way faster, way better handling at speed plus better ability to soak up bumps, the dual-clutch S-tronic is fantastic, the seats are more comfortable for long rides and the B&O audio is the best I've had in a car.
If Lexus offered an IS350 with AWD I might not have have arrived at this decision, but they don't and I did and I have no regrets!