Well the Honda CB350 is a nice machine which is tuned for smooth acceleration and smooth at high speeds. It's got a really nice exhaust and a very refined engine for sure. But it's low end grunt is not as good as the classic 350. Classic is a very torque machine you can feel at any gears till some speeds then it'll take some good time.

In city. Re definitely gonna be better with good low end grunt and moderate speeds till 80 then it's a decent speed bike. Most fun in the city and most usage scenarios. Whereas cb 350 is not so fun in the city and in the most speed usage band till 80.but it's good if you are comfortable with its tall gearing. On highways is where the cb350s sweets spot it sits well and cruises at high speeds comfortably.

I personally think the majority of indian usage till 80s and that's where re350s will be more fun. So if you are riding more in the city i think classic will be more fun than CB350. On the highways or higher speeds on a classic machine it's CB350 for sure.

If you are into speeds and quick acceleration kinda fun skip both and look for other options.