I have the Brother PE770, which is roughly 1/3rd your budget. I rarely embroider so it's the perfect machine for me. It comes with a 4x4 and a 5x7 hoop, and there's some way you can buy a larger hoop to do continuous designs but I haven't tried that.
My main complaint about the machine is the screen. It's a tiny screen without very good resolution, so it's REALLY hard to tell what part of the image its showing you it will embroider next. If I ever buy another embroidery machine, I will look for one with a better screen.