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I've had the C300 as a loaner car a few times. I was thoroughly unimpressed. It seems like they've really tried to save money on the the production of that car. That's the cheapest looking interior I've ever seen in an MB. Cheap hard plastic everywhere. I think low level hyudais are trimmed out better than that.
I didn't much care for the way it drove, either. Numb and underpowered. Overall a very thin feeling car.
The exterior has grown on me, I think it's a nice looking car, esp. when it has the larger optional wheels, etc. on it.
The C350, I imagine, has some standard interior upgrades that probably make it nicer. And the 350 is going to have a lot more power than the 300.
I agree on not keeping your 06. Too bad it's not an 07, that was a better and more reliable car.
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