Would a shorter stem, and a zero setback seatpost help?
$1200 will get you a very decent bike for getting around this town/light trail use. I just got a Kona Jake 2013 from Bikenetic (in Falls Church VA). They (and many other stores) will let you test ride bikes they have in stock.
Have you ever used an online sizing calculator? Figure out roughly what effective top tube size you want and check out the geometry of different models' sizes online to get an idea of the frame "size", since 58cm/62cm etc means different things on different bikes.