Template sensor exceeds 256 chars

Don’t know if it works, but have you tried it without a template sensor?
Just templating the message you want to send?

 action:
    service: notify.pushbullet
    data_template: 
      title: 'New Home Assistant Release'
      target: 'YOUR_TARGET_HERE' #See Pushbullet component for usage
      message: "Home Assistant  {{ states.updater.updater.state }}  is now available."

Another solution would be to send a html mail via smtp.
This can be as long as you want.

EDIT: Works! Tried it with the example of the templates tool.

      - service: notify.pushsafer
        data_template: 
          message: >-
            {% for state in states.sensor -%}
              {%- if loop.first %}The {% elif loop.last %} and the {% else %}, the {% endif -%}
              {{ state.name | lower }} is {{state.state_with_unit}}
            {%- endfor %}
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