Firstly, please don't quote the whole of the previous post it makes it hard for others to read and we can always scroll up to see what went before.
If you're going to pay $1000 ish then you have to make choices. AVCHD or Tape? SD or HD? and that is something which you alone can decide. In essence you're asking "Which it better, Tea or Coffee?" and the answer is "It depends..."
Movies have been shot on crap equipment. The Bleeeaaagh Witch Project for one, Cloverfield (supposedly) another. 28 Days Later was shot on mini-dv. etc. etc. Read and accept what Mitch is telling you. The technical quality often has little to do with the cameras but a lot to do with the abilities of the crew, and that is what you should be concentrating on.
Until you can make good shorts with cheap equipment, there is no point in asking "what camera is necessary for broadcast or festivals?" Like I said, each festival has its own requirements but even if a festival insists on HD, they're still not going to refuse something like 28 Days Later just because it was shot on SD mini-dv.
Don't forget you'll also need sound equipment, camera supports and lighting.