Net net, I'd get the GNC 355.
Your questions are great. FWIW, I currently have both a GTN 650xi AND a GNC 355 in my panel. I did fly it for half a year with only the GNC 355.
How long will you have this plane? How much / what % of flying will be IFR?
IF you'll have this plane a long time, and/or IF you fly a lot of IFR, the GTN 650xi is a nice upgrade with the larger screen, smart glide, ability to input altitudes into the way points for the auto pilot, etc.
That said, the GNC 355 is a perfectly fine option for flying GPS and RNAV approaches.
Either one will feed your ADSB transponder, run a Garmin autopilot, etc.
Either choice will give you GPS / LPV's on the G5, but no Nav radio ILS. Your G5 HSI can only be hooked up to one source, which means your existing Nav radio can't also be hooked into it. It sounds like your Nav radio already has that solved with it's built in glide slope though.
Why did I add the GTN 650xi to the existing GNC 355? I'll be keeping this plane for a long time, I didn't have any Nav radio navigation capabilities, I do like the larger screen, faster processer, etc., and I liked the idea of having a back up GPS. That said, I've done dozens of approaches in 2025, and only one of those was an ILS. And as mentioned, any runway with an ILS approach also has an RNAV.
It's also a scalable option. You can always add a GTN later if you find yourself keeping the plane for a while, and you get to where you'd like the larger more capable GTN 650xi features. The GTN and GNC will sync nicely together as well as all the other benefits to a dual GPS system.