Thanks everyone for the advice. In several years of discussion with LOML, we have decided that hardwood > engineered >> laminates or tile. Its time for a change, and will probably go the hardwood route. Honestly, until I had visited some of the hardwood stores (perhaps my mistake), I had just assumed that we would get unfinished sand-in-place hickory at $3 a SF. A couple weeknights with a rented sander and a dust mask, followed by some poly, and I thought I'd be set. Now I just don't know. What Adam had said about the beveled edges echoes some of my original thoughts when I saw these floors installed at the store: these are great places to get dirt, sand, dust, and nails, caught.
Perhaps an important consideration that I forgot to mention. I know that we definitely will be in the house for 5.5 more years, at the end of which we will definitely be moving. So, I don't know how that plays into the thinking. Given the sorry state the current floors are in, something will need to be done (i.e., new carpets, laminate, etc) before we try to sell. We were thinking that we might as well get something in the interim. Just my naive way of thinking, but I almost think that we could recoup at least some of the cost of going Brazilian 'something'. "Exotic hardwood throughout the entire upper area" might have a nice ring to it in the realtor ad. I'm not sure if I could say the same about the cheaper, but perhaps more practical, options of engineered or laminate or faux-wood tiles.
I have a lot of experience with laying tile, but relatively none with wooded floors (if you don't count Pergo), so this will certainly be a learning process. Re: jamb saws, I have used with success my Bosch FlushCut saw (Swiss made, neat little tool, btw). I know a dedicated saw might be nice, but this one will have to do. No budget for more tools, unfortunately. $500 for a flooring nailer? Ouch! Any opinions on brand with this?
At 1,200 SF, going with hardwood will eat up a pretty big chunk of our savings, and I have just a bit of trepidation with going forward at this point. Everyone's opinion has been greatly appreciated. If anyone can offer up any more, I'm all ears.