IMHO, keep your PC8500. You may want to use the embroidery function to create labels or to add that little something extra to a quilt, and if it is also a sewing machine, you will have something to use if your new machine has to go in for some TLC.
My first choice for a machine is always a Bernina. Many will not use anything but a Janome. Juki and Baby Lock also make nice machines. If you can wait until the Quilt Festival in November, you will be able to test drive a lot of machines, many of which will be on sale. I don't know what dealers are in Magnolia, but I do know Quilters Quarters in Conroe carries machines.
For $1,500, you should be able to get a nice machine. My suggestion is to always go with a dealer, because you can test drive the machines and a dealer will be able to do repairs and have accessories (additional feet, bobbins, etc.) on hand.