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As someone who has an 04' GS (wife's ar) in the garage, unless you're needing the slight extra interior room, I don't really see much reason to choose the GS over the IS, especially given the price difference.
I am actually looking at the IS at my next vehicle.
Get the GS...much more of a true Lexus
I think (personally) the IS is one of the few truly stylish Lexis body designs. I'd go for the new F type ... although that wouldn't address your mileage concerns.