Your GS's advice is wrong. Until the volume of the bore exceeds the volume of the burning gases, your velocity will increase with bore length.
In a "typical" .223 Rem loading, approximately 50% of your velocity is attained within the first 6" of barrel length, 75% by 10", and the remainder is graphed as a gentle upward slope for the remainder of your barrel length. Within reason, the velocity increases ~30-50 fps per extra inch of barrel beyond 20" of barrel length.
Theoretically, you could have a barrel too long for your chambering/load, but chances of such a long barrel being available, even a custom one, is pretty remote.
At the practical level, you've pretty much wrung out all you're going to get from a .223 Rem with a 26" barrel. The velocity gains with a barrel longer than that are pretty insignificant with this chambering. Powder choices will of course make a difference, but not enough that your gunsmith's advice could be considered correct when using powders suitable for the .223 Rem.
If I were considering long range shooting with the .223 Rem, I'd certainly opt for the 24" (or 26") tube over the 20".
Mike