So at the end of the day, I realized I just couldn't swing the cost of a shiny new 27" late 2012 iMac, and I upgraded my late 2008 iMac Core2Duo with an SSD.
Picked up the Samsung 830 256GB SSD for $155 to my door. Fortunately I have a
drive caddy so I was able to install Mountain Lion to the SSD before I installed it, and over the course of a week or two I would sometimes boot off the SSD in the caddy and set things up - I went for a totally clean install this time, no migrating. When it was near enough ready for prime time I popped the case and pulled out the SSD and so deftly mounted the new SSD.
My current setup is that OS X, all my apps and non multi-media documents are on the SSD. My iTunes and iPhoto libraries are on an external USB drive due to their large size I can't fit them on the SSD.
So at the end of the day - in spite of the 'benchmark' times I noted before and after the HDD -> SSD swap - holy cow my system is so much faster and snappier than before. The difference is truly amazing. I'm so glad that I decided to give the SSD route in an old computer a try because it's blissful.
Here is my jerry-rigged SSD install.
You can see that I really went all out. LOL.
And here are images of the times I measured before and after, again - my system feels so much faster than the numbers indicate, it has transformed my tired old iMac into a really quick and fast responding computer again. Sure it will be a relative pig compared to a new i7 machine when it comes to really heavy duty tasks like Pro apps or encoding a huge video, but most of the time it feels fantastic.
btw - the boot time should be faster, but I'm having an odd delay when I boot, I get just a blank white screen for about 35 seconds before the Apple logo appears. Oddly a friend with an HDD iMac is having the same problem, no idea if it's related. I've reset the PRAM and set my Startup Disk in SysPrefs, but the lag remains… So the real boot time is more like 20 some seconds if not for the delay. Given that I only reboot about once every two to four weeks I can life with the slight delay when rebooting.