What would you do in my situation?

Sell the 250f now and ride the 125. Then re-evalute how you feel about things at the end of the riding season, possibly selling the 125 and buying a newer low hour 250f for next year. Dropping money on fixing the current 250f is a losing money proposition.

I didn't have the energy to read it all but my opinion is: ride em both. You've got both of them and I assume they still run. Ride them until you decide you want another bike. Two bikes is better than one, even when the one is several years newer than the two.

Keep the smoker and dump the porker. Keep the cash and that sweet looking 125! Almost a no brainer...

Sell them both and buy a KTM 150!

Exactly. Are you racing? Yes = keep 250F, no = keep 125. Simple as that.

Someone else said that 125 would be less costly to maintain, but that's not necessarily true. Regular maintenance is the same and if something goes wrong in the motor it is cheaper to fix, but you'll be doing it more often than you would on the four-stroke. Doesn't matter the skill level, two-strokes are just less reliable. However, they are both Honda's, so reliability isn't too big of an issue.