After gaining intrests in the new 3. I decided to look at its competitors.
I went to the Lexus dealership and test drove three different IS's.
IS 250 RWD 204 hp
IS 250 AWD 204 hp
IS 350 RWD 306 hp

First off; if you thought the new 3's back seat was small; it looks like a minivan compared to the IS's backseat.

First the 350 straight line is amazing!!! The thing just goes!!! I did feel understeer with the bigger engine and also the suspension wasn't as tight as either of the 250's. The only downfall is that the 350 doesnt' come in a manual. I had a grin on my face everytime I stepped on the accelerator.

The 250's were not as fun to drive. It does have the same specs as a 325i but it doesn't compare. I didn't some research and the 325i does 0-60 a full second quicker. 6.1 to 7.1 and I forgot the quarter but it was similar. I drove the RWD in manual and the AWD in automatic. The manual really helped the AWD in turns. I thought the suspension and handling was better than the 350's because of the weight difference. I got bored driving the AWD and headed back to the dealership after just a quarter mile.

Gismos, gadgets and options wise:
You get more for less with Lexus ofcourse.
Some standards included keyless entry and start, dual climate, six disk changer, sunroof. The premium package included wood trim and heated and ventilated seats for under $1300!!! I think this was standard on the 350.

All and all; I think the IS offers value and affordability compared to the new 3 as we all know BMW's options add up. There really is no comparing the 250 to the 325i engine. It's BMW hands down. The 350 is a different story; hopefully they tighten up the suspension a little bit.