I like versatility, so that almost puts me in the .357 crowd. However, my guess is that even if you can "handle" a .357, the you can probably handle a .38+P or .38 even better with quicker follow up and better shot placement. Personally, I want that follow up and placement advantage, but that's somewhat subjective and others will have differing opinions.
Another thing to consider is muzzle flash and sound. Out of a snubby .357 produces quite a fireball, which might not be desirable at night. The louder report is also more apt to cause permanent hearing damage especially if you needed to fire in an enclosed space. (My experience is with a 3" barrel, I imagine a 2" compounds things.)
I couldn't decide, so I have two S&W J frames. The first one is a Model 60 (Stainless Steel) .357 with a 3" barrel. The second is a Model 442 (black aluminum) Airweight .38+P with a 1 7/8" barrel. The 60 was purchased primarily for my wife at home; the 442 for concealed carry.
The extra weight and slightly longer barrel of the 60 make this one fun to shoot and eliminates some of the disadvantages of the snubby. While I'll shoot some .357s and .38+P, regular .38s are its main diet at the range for simple economic reasons. When shooting .38s, the longer .357 cylinder chambers will get some carbon build up and require a little more elbow grease when cleaning. (Hint: get actual chamber brushes which are slightly larger than bore brushes.) If you don't get the crud out, .357 might be a little snug going in and sticky to eject if you have been using .38s.
The only "carry" the 60 gets with .357 is outdoors with the intent of protection against 4-legged attackers, or possibly a "coup de grĂ¢ce" when hunting, although I've never needed it for either.
The 442 is a great carry gun. Its amazing the difference an inch off the barrel makes for comfort and concealability. I have been carrying Federal Nyclads in .38 standard pressure, but I am always trying out different types. The Nyclads hit point of aim for me and allow for quick follow up shots.
I don't think you can go wrong with either. If you're looking used ($250 sounds inviting) here is a great post on what to look for:
http://www.thefiringline.com/forums/showthread.php?t=57816