Madfloyd,
We first met because your system was unable to reproduce full harmonics without distortion (as Riley804 obviously remembered). I assumed you wanted to reduce the distortions while retaining the harmonics. Sorry if I misunderstood.
As you said, we demonstrated during your visit that there are no serious harmonic distortions from your present vinyl rig. Nor are there any with Nick's preamp, as you know from hearing ours (best DSOTM you've ever heard, or so you said).
Your last email indicated you're still hearing the same distortions, and the harmonic capabilities of the Alaap have highlighted them if anything. Since the problem's not with your source components or preamp, it's presumably with amps, speakers or room. However, if a simpler, cleaned up sound is more appealing than working on those, then almost any SS preamp will provide it. If you want a really good one, Raul's Essential 3160 is the best I've heard (though in fairness there are many I haven't).
Regarding a new rig, the SME arms would be well aligned with the above strategy, because they're less transparent to harmonics than the TriPlanar, Graham Phantom or a Schroeder. A very damp arm like a IV or V should pass fewer harmonics to be distorted elsewhere in the system and provide a cleaner, more manageable sound.
As for VTA on-the-fly, if your system isn't geared to the full reproduction of harmonics it's doubtful you'll get much benefit. With any good cartridge (including your XV-1S), the main effect of varying VTA/SRA is to properly integrate the fundamental of a note with its harmonics. If a system reproduces fewer harmonics, altering VTA has less effect. Given the goals I summarized above, I wouldn't place on-the-fly VTA anywhere near the top of the list of needs in a tonearm.
As for turntables, the SME and Raven are both fine choices. Pretty hard to go wrong with either one. Buy whichever one you like the looks/price of and which is available in your time frame. SME table/arm synergy and the chance to work with a single dealer might tip the balance.
Hope it works out,
Doug