Lots of things are possible, but may not be desirable. With a budget of $1000 you should be able to get an effective wand mod ;)
I think these gaggia models are basically saecos. There may will be a replacement wand that well work for you.
As for upgrading, your uneducated taste buds will notice the difference but beware, in a few months you will then need to upgrade again as it is very hard to quit once youve started.
How many cups a day? One at a time, or several at once? How much time and effort are you willing to put in to making a coffee and maintaining your machine? Is space an issue? Are you willing to consider used, or do you want the peace of mind of full warranty?
There are options under $1000, but it helps to know a bit more. Im happy with my gaggia, but as you drink lattes, it would probably not be your best option.