I was in the same boat. Several years ago I sold off my AR-ES1 with a Premier MMT arm and Grado Signature 8 cartridge. Earlier this year picked up an Audio Techica LP-120XUSB and put a VM95SH on it.....it sounds amazing, and it sounds better than my Denon DCM 440 with Topping E30 DAC. It's definitely possible to very respectable sound in your price range.
I had also considered the Fluance RT-85 with the Ortofon 2M Blue cart, but am glad I went in the direction I did.
I had also considered the Fluance RT-85 with the Ortofon 2M Blue cart, but am glad I went in the direction I did.