The XC32 isn't very good either.
Are the wheels and brakes more or less equal between the two? You can buy a pretty good air fork for $300. Think the Rockshox Recons dip down near $200 from time to time. Suntour also has an upgrade program which might be worth looking into.
If your old mtn bike/s LX stuff is really that much better than alvio you can always swap it all over and put the alvio on the old bike
.