VM34 does seem a bit too big for a 4 stroke 250 twin, even if it revs a bit higher than the XS650.
I have been messing a bit with a Suzuki 125 single, which has an engine shared between a lot of models, both on and off road (GS, GZ, GN, DR, DRz) this has 12 hp stock, and could be considered as half a 250 twin.
Modifying these is quite popular, as there is various big bore and stroker kits on the market for them. 141, 152, 170 and 187 cc are commonly available options.
Even with a 187 cc big bore kit, most end up with an 28 mm carb.
And for street use, 30 mm DellOrto or Mikuni are recommended options for Honda CB350 twins.
So the 34s are definitely too big for your 250 imho.