Wayne,
This is a close call!
I've used both the RO 150 and the RO 125, and both of them are such great sanders.
As far as functional differences go, except for size, both sanders remove material equally fast, and both do a fine job (no pun intended) at higher grits. In fact, a lot of people in this forum use their Rotex sanders for all stages of sanding (John Lucas is an example). Then again, some people like to save it for the rough stuff (As Lou Miller mentions).
Both sanders have amazing dust collection. Both sanders are a bit loud in their "Rotex" mode. The design of most of the controls is the same (the rubberized gripping area, barrel handle, speed control, mode switch, and power switch). Both sanders have round dust ports with ribbed walls that hold the hose on securely, and both use the Plug-It power cords.
There is a slight difference in the way the sanding pad is removed on the two sanders.
The main obvious difference is the size of the two sanders. The weight difference between the two sanders is significant enough that you'll feel less fatigue if you have to sand a vertical or overhead surface for any length of time. If you do a lot of vertical or overhead sanding, the RO 125 may be better.
On the other hand, if you are sanding a lot of horizontal surfaces, then the RO 150 is usually better, since it covers a wider area. I say "usually because, many times, when I need to sand narrow horizontal surfaces, I reach for the RO 125.
Also, keep in mind that the RO 150 has an edge guard -- a terrific enhancement that allows you to get up close to an edge without damaging it (or the sanding pad).
Sorry if I've just gone and confused you!
By the way, I have posted two reviews of the new Rotex RO sanders in the forum. One review discusses the RO 125 (comparing it to the older version of the RO 150), and the other review discusses the new RO 150, with some comparison between it and the RO 125.
Here are links to my reviews:
RO 125 Review
RO 150 Review
Feel free to post follow-up questions on this.
Stay in touch,
Matthew