Good decision. I would only stay with one tang as well, as 120g doesn't really have enough room for separate territories. FYI I only have two tangs in my 225g.
Powder Blues can be very aggressive, so that is the part I would worry about...especially with only one other tang in the tank. This may sound counter-intuitive, but if you were going to add the PBT (and I think you have the space to do so) I would maybe consider adding a third tang as well so that if he is going to be aggressive, he will spread it out. I learned this technique while keeping cichlid tanks. Cichlids are nasty buggers.
I wouldn't go with a powder blue. My uncle had a sail fin (about 4-5 inch) and had to give it to me when he got his powder blue due to fighting. He is now with my yellow (about 5") and they get along fine about 95% of the time, some occasionally tail to tail action when feeding but no actual damage like the PBT did. They are in a 110g for now.
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