I've had a Lexus for about 3 years now, a 2004 IS300 and it's been nothing short of spectacular. The handling, the interior, the engine have all been fabulous. I used to put a lot of miles on it when I commuted 90+ miles a day, so it has about 75K on it. Not one issue what so ever. In fact, my front brake pads are finally going out just now!
As for those who claim the Lexus is just an overpriced Toyota, please read the following article:
http://detnews.com/2004/specialrepor.../a15-70498.htm
That article details the difference in quality control that Lexus maintains even above and beyond the already stringent Toyota protocol.
Also I beg to differ on the "WOW" factor with a Lexus. While I do agree that a Benz will attract more attention, a Lexus will still certainly have a great deal of admiration from other people. I have always gotten a nice reaction when people find out I drive a Lexus.
Of course, I can not say anything too bad about a Benz because I have never owned or even driven one. I personally do not like the look of the cars, but you will probably be very happy either way. I just wanted to share my Lexus experience.