LS tractors are great. Like Diggin It said "...you get the guts without the fluff. The meat and potatoes without the parsley and expensive restaurant ambiance."
LS makes tractors for New Holland and a few others.
Kubotas are nice, but expensive for what you get. But with that, you get a great dealer.
As far as a backhoe goes. Once you have one, you will use it. Maybe not all the time, it might not be hooked up 24/7, but when you need to remove that stump, or dig that rock out, or level that bit over there, you will be glad you have one.
Before I got my backhoe, I always said the same thing. "Yeah, need to rent a mini-ex so I can get out there and make that happen." and that only happened once. Now, things are getting done. I recently hooked up to the BH just to place some big rocks around the yard and made them look pretty.
Could have done that with a the FEL, a pry bar and shovel... but I have a backhoe.
My tractor is a bit bigger than the MT125, so I really cannot comment on how well it does. But it is anything like my tractor (bullet proof with tons of extra features other colors make you pay big bucks for), then that is where I would be looking very hard.
I would also probably ditch your local dealer. If he is simply a 'dealer' but does not move LS parts or tractors, then you probably dont want him working on it. I would generate the relationship with a guy down the road, who does move tractors. As always, I could be absolutely wrong about your local dealer...
Where I grew up, we had a guy who was not a dealer, but just a mechanic who owned a shop in a dumpy part of town. Lane was his name. Lane had junk all around his shop. You got dirty just driving past his place. But when you needed some help with a broken tractor, chainsaw, excavator, harrowbed, truck, railroad engine, airplane, space shuttle, this is the guy you would want to call. He could fix just about anything. We would bring something to lane and it was always a "aint no thing."
Your local dealer might be Lane. If so, I would use him.
