Well, I made my decision, and I decided to go with a trunk/pannier setup. I got the Topeak MTX DX trunk with fold out panniers. It, along with the Explorer rack, was in my budget. I love it. The panniers hold a surprisingly amount of cargo. I love the quick release feature of this trunk and that it has a shoulder strap. It definitely feels great to ride without a pack/weight on my back, I love it.

Thanks to all who contributed to this thread.