I would suggest getting an Ovation guitar with a super shallow cut body. The necks on these guitars are a little bit smaller than most acoustic guitars. The bodies are really slim so it does not feel bulky at all. I have owned two of them and they have great sound. Martin also provides some acoustics with a smaller body type, although they tend to be a little more expesnive. At the bottom are some links on some guitars that I would recommend. Go to your local store and play an Ovation though, with a super shallow cut body, I really think that is what you are looking for and you can find one in the mid-price range.
Also...most guitars come straight from the factory to the store and come with normal action. And that is usually set pretty high, to let the owner adjust it to their liking. I always after buying a new guitar go to my local guitar shop and have the action lowered, the trust rod straightened, and an overall checkout on it.
http://www.guitartrader.com/itempg.icl?orderidentifier=ID11763037008286048244B581658&secid=1022&subsecid=1100&catid=1241&dirpage=dir3&itmid=58773&eflag=0&curitempos=17&numitems=24
(I don't think you'll find a smaller guitar than this)
http://www.guitartrader.com/itempg.icl?orderidentifier=ID11763037008286048244B581658&secid=1022&subsecid=1100&catid=1244&dirpage=dir3&itmid=58945&eflag=0&curitempos=10&numitems=36
(Here is almost the same guitar but a little more expensive and not as shallow as the one above)
http://www.sweetwater.com/store/detail/LegendCLXCBK/
(This one is more expesnive, with a mid-depth body which is still a good size.)
Also since you have a $200 guitar now, you'll see a difference with anything $400 or more. But if you really want to step it up, you need to spend in the $800-$1200 range and get the tighter bracing and more quality wood. I hope this helps. Good luck.