I have both rifles and would choose either depending on the situation. If I had to buy just one it would be the AR for the following reasons.
First more than likely the S isn't going to HTF. More than likely you'll use the rifle inside your home to protect your family. The .223 is the best weapon bar none indoors as it causes much less damage to people after penetrating though walls than a duty pistol, 12 gauge with buck shot and certainly a .308. The round was designed by my Uncle Sugar for use on human beings and though luck or engineering the round using the right bullet causes more damage than anyother known (the German 7.62/.308 based on our .223 is a known equal).
The .223 rifle is smaller and lighter so that means it points quicker and handles faster. The AR fits me better than the FAL. The AR's magazine release, safety and bolt release just make sense to me. The FAL's tiny magazine release and bolt release don't work as quick as the AR's for me. In fairness I have more than 10,000 rounds though the AR's and just a couple thousand though my FAL...
The FAL's adjustable gas system is very dependable.
Each rifle is going to run about the same amount of cash. A good AR runs about $650 to $800. A good FAL starts at around $850. Magazines are $12-$15 for the AR and $5 to $8 for the FAL (get a metric FAL/STG-58 vice the inch pattern).
Ammo is about the same cost but the .308 is much heavier in its steel magazines. MUCH. That's one of the primary reasons that I have both weapons. My wife is just on the far side of 90 pounds and I'm on the far side of 200. The lighter AR ammo load compared to the FAL is a major factor to my wife.
If I was defending house and home from the swarming hordes of invaiding Taliban's
I would be armed with a .308 - more than likely my FAL and my wife with an AR. If I had to leave the house and strike out for greener pastures it would be with a couple of AR's between us. One is an M-4 flat-top with an Aimpoint, the other is a 20 inch barreled rifle with a telescopic ACOG.
One last thing to think about. 500 yards is a long long way away. In many parts of the country you can't get a 1500 foot shot if you had to. At those long ranges the .223 just ain't got enough (for me) to shoot at a human. So if I was standing on the highway shooting at another guy on the highway (about the only place you'll see 1500 feet around here) I would use a .308 - more than likely my Springfield Armory M1A. I figure I have to say where the food is and that's in the cities, along the ocean or the rivers where the trees are going to be thick and the ranges close enough for a .223.