Seeking Advice to Improve My Audio System ($1000 Budget)

it’s tricky because if you go to passive speakers, you would need an amp. 

You can get a decent vintage receiver for under a $100, on ebay, craigslist or shopgoodwill. I would go with Denon or Yamaha. You can’t really go wrong with it. But you can add Onkyo, Adcom and NAD to the list too. 

For speakers, again no need to spend a $1000. There are a lot of vintage speakers that sound great. Cambridge Soundworks, Celestion, Boston Acoustics, Monitor Audio, Paradigm, etc. The key is to find quality and avoid junk. 

People here spend many 1000s a year on cable upgrade alone. They can’t really make meaningful suggestions for a system that has no quality component (maybe your CD player is OK) especially the Rega 1 is despicable. I am saying this as a Rega fan, that version should not exists. 

(I am terrified by the Wavetouch Audio WT-95 idea that would "take" your $1000 and would leave with you where you are right now. And coincidentally, the person suggesting it is the person selling it. Ouch. No.)

You can get great sound from vintage, quality components. Just do your research or feel free to pick our brains. Knowledge substitutes a lot of $$$ in audio. 

Re KEF and Hegel - no, not a good idea. Unless your goal is to spend many thousands and be done with it. The LS50 has a very unique sound, needs very tricky placement, and on the bright and overly detailed side. Which is exactly what the Hegel does, too much separation, too little warmth and fluidity. Together: bright, fatiguing, in your face notes, that feels like a cat scratching your side burns. Both the Hegel and the KEF are impressive and good value for the money. But you need to find out if your ear likes that type of very revealing, analytical, monitor sound. 

@gano from the additional reading and research I’ve done (and goodness much of this can be a time sink! You can get lost in the reading.) that seems to be the consensus, bright and fatiguing. I have come to love looking at the design of the Hegel amps, but I think I should leave them for a future upgrade.

I now have changed course, and coincidentally have come very close to one of the entries listed by @petaluman, which is to go Wharfedale Lintons+Yamaha A-S801. I have found a really good deal on this locally for under $2500 and with a 30 day trial period to audition them. From what I have *read* and looking at the range, it doesn’t seem like this would necessarily need a subwoofer. I am curious to know what you all think of this, particularly re: the lack of a subwoofer and the amp choice before I pull the trigger

Regarding comments from @gano ​​​​and @yoyoyaya on the Rega 1 cart, that definitely seems to be the next upgrade needed after this purchase. Frankly, I don’t think I want to keep this one and upgrade it, there is an occasional buzz/hum that sometimes bothers me, and I don’t like having an integrated preamp. I’ll be looking for a new turntable and cartridge after this, which I imagine involves being brave and learning about cartridge alignment, replacement, etc. I’ve spent a lot of time listening, reading and speaking with others about this hobby already (and will be putting a good chunk of money into it!), I might as well ’get real’ with it. I like what vinyl gives me too much to have a bad sound.

re:  Wharfedale Lintons+Yamaha A-S801.

I have had both, not at the same time though. I did not end up keeping them so they didn't end on the top of my list.

The Lintons are very popular and well reviewed. The Yamaha less so. For that price range, I don't think there are better values than Creek, Quad Vena, Mission and Arcam. Musical Fidelity is one price category higher but also terrific value. 

A 30 day trial is the way to go. 

Here is a web site for speaker options: https://speakerchoices.com/

I know it may be frustrating for you that you find a combination you like and people tell you to like something else. It's all subjective there are no wrong choices. Your ear is the smartest guy in the room.

@gano I have come to learn that this is simply a process of acclamation and trial and error. Everyone has an opinion, some are good, some are bad, but the wide range of often contradictory opinions lead me to have a better knowledge of the names, brands to look for in the future along with a greater understanding of the audio equipment world, of which I knew very little about prior to a few days ago and now I know...well, a bit more!

Same thing happened with learning about classical performances, everyone has a different opinion about this or that conductor or interpretation. The large amount of different opinions give you things to listen for, and ultimately be the judge of yourself. It’s fun!