I just picked up an OfficeJet Pro 8600 - Staples/Office Depot have a promotion on them so they sell for $149 ($50 off). It's an all-in-one and the Pro means two things:
1. bigger cartridges with cheaper ink, so you may pay more up front, but your ink is cheaper
2. higher print capacity means it SHOULD hold up longer.
It's not a photo quality printer though, so if that's what you are looking for this is not it.
EDIT: I just tried printing a 8.5 x 11 photo and it came out great, so unless you are really particular about your photo prints (this printer uses 3 colors + black, while photo printers use more like 5 or more colors + black, resulting in more nuance) I think this is quite OK for photos as well.
I am concerned with quality photo prints but not for this particular purchase. I own a Canon Pro 9000 Mk II for that, however the ink goes too fast and is too expensive for everyday use.
Something you touched on that I didn't mention in my OP is ink cost, which is important to me (obviously cheaper is better, and I'd like to stick with manufacturer ink). However when looking at printers I don't even know where to start with this. My basic understanding is that in a general sense a laser printer will give more bang for the buck than inkjet - is this true? I notice in the printer you mention it says it is 50% lower cost per page than laser.
Size is also something of an issue and laser printers generally seem to be larger. This is one of the reasons I like the Canon MX410. I can go a little bigger but not too much.
Generally and historically you are right that laser printers are cheaper to use (however also significantly more expensive to buy), but my understanding is that ink jets have evolved quite a bit.
The main thing with the Pro series, apart from having a higher duty cycle (25,000 rpints/month) is that they use larger print cartridges. HP claims that the cost per print is below that of a laser printer - it could be marketing hype of course - I've only had the printer for a few days so I couldn't say. I will say that the cost of ink cartridges is significantly lower than my old Photosmart c7280, which on top of needing small and expensive cartridges, seemed to burn through them at an incredible pace.
The footprint is approx (w x d) 19.5" x 14.5" with the duplexer installed. The paper tray, when pulled out adds another 8.5" to the depth.