Balanced cables are less prone to interference due to the design of the cable and how the equipment on either end uses the signal. The audible gains from using balanced signal over balanced cables in Home Theater implementations are negligable (IMHO, the only gains are bragging rights).
By doing the XLR to RCA conversion, you are removing the ground conductor from the signal transmission. In effect, you are converting your balanced cable to a stereo cable. So the question is, what did you gain?
If you choose to go the XLR to RCA route and use the 250ft of cable, I would recommed that you not do the XLR to RCA conversion if your transmission distances are large, that is > 100ft. Indeed, don't even bother using the balanced cable at all if your distances are < 50ft. IMO, waste of money and time and completely unnecessary.
XLR cables (that is, XLR on both ends with balanced signal) have been used over very large distances, 200 - 300ft runs in pro installs are very common.