29ers are cool if you want to go fast and roll over bigger obstacles without having to bunnyhop, but they don't make much sense unless you're pretty tall. I've heard the reason is that the wheelbase is longer on a 29er, so steering isn't as quick and nimble as it would be on a 26er. Also, the bigger wheels will flex a bit more and may be heavier too. How much of a difference this makes for a recreational rider is hard to say, but I'd at least test ride one if you can. As far as full suspension goes, I'd skip it. At the price point you're looking at, you're not going to find anything that great (not new anyway).
FWIW, I have a Specialized and I really like my bike. I think the Specialized Rockhopper SL Expert looks pretty cool for a good recreational hardtail. The MSRP is a little more than you were saying you wanted to spend though.