Based on what I've read (written by those who are paid to have an authoritative opinion) I'd go with the Bandit. Wasn't the 1250 a BOTY contender recently (this year? time goes fast)?
I'd not heard a bad word about VFRs for about a decade, then I rode one (late model 750) and I wondered what the fuss was about - it was like my ZZR-600 only buzzier, though the race can sounded nice (in the sticks, it was plain embarassing near houses). Less comfy than the ZZR too. Since then, the world has moved on, but not the VFR & now it's past it. Even mags slag the VFR off now, and I reckon the Bandit would be more fun. How could 500cc more not be?
Maybe I'm getting old (Yes, I've sold the Beemer. No, the VFR I rode won't be mentioned in the same sentence.) but cubes are good, complexity is bad, and fun biking is what Bandits were originally for - but I've never heard anyone call a VFR fun. "Competent", "the complete all-rounder"; "do-anything", yes - but never fun.
Ask 100 people you'll get buried in opinions (like this one).
Ask for a test ride & check both bikes for yourself. Remember that the shop's response is also important - if they say no ride, you give your cash to a different shop.
Test the bun-toasting factor on those high VFR pipes, too...
My $0.02...
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