My iMac is dying. What do I replace it with?

I'm pretty sure my Graphics card is dead. See my post here https://discussions.apple.com/message/21496843?ac_cid=op123456#21496843
I don't know what to do, I'm sure I'm looking at a $300+ bill if not more like $500. For that price, I should just start looking at a whole new computer.
I like the idea of an SSD, but in all cases, I'm looking at a minimum of $1500.
I like my iMac, but my 27" screen is really big, almost too big. I like the 21.5" but I feel like I should always be getting more for my money than the last computer I bought.
This might be the first time I get less than what I'm replacing.
For example:
My iMac (Late 2009):
27"
2560x1440
2.8Ghz i7
8GB 1067 DDR3
ATI Radeon HD 4850 (512)
New iMac
21.5"
1920x1080
2.7-2.9GHz i5
8GB 1600 DDR3
GeForce 640M-650M (512)
If I upgrade to 16gb DDR3 it goes to $1750-$2150
I paid ~$2700 3 years ago for upgraded everything on the 27" iMac (Late 2009) and now it's (basically) dead.
I don't feel like repeating such a costly investment in another 3 years... :-(
What do I do????
In a way I also miss my laptop (an old 12" PowerBook G4) but in order to get close to the specs I currently have, I have to look at the 15 RetMBP and again we're getting into the $2199+ range again.
Help me decide please!!!

The reply on your other thread is amazing. I find myself wondering how they can properly diagnose a hardware problem online? You obviously are having heating problems causing the GPU to act like that. Maybe it's just a fan problem or maybe even just a buildup of dust inside he computer impeding airflow? Before I give up on a three or four year old iMac I would at least try to vacuum out the vents on top and bottom of the iMac. If that didn't help I'd take it to the nearest Apple Store or AASP and have it properly diagnosed and get an estimate for repairs. Check your serial number to see if your iMac is included in the hard drive recall, not all late 2009 iMacs are. I sure wouldn't give up because someone looked at some photos and said that your graphics card is broke. The best advice he gave you is to back up your system.

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help

rzernitsky
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