The 305 should by no means be too powerful for a 125 litre tank, personally I'd just leave it the way it is and let the fish get used to it, turn the output round so the flow hits the glass first.
Adding a spraybar would be the ideal thing to do, that way you dont lose any circulation as you are just spreading the flow out more evenly.
You could lift the lever UP and reduce flow, but yes, performance would also be reduces and it puts extra strain on the pump so over the long, long term wouldn't be a good idea IMO.