The Rega would probably be your best bet; $500 doesn't buy much of a tonearm these days.
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Ideally($), I'd go with just a cartridge upgrade if that would do the trick. The two dealers I talked to kind of ragged the stock arm, which was why I was asking for some, hopefully, objective advice. I've never made any upgrades to the table before.
I really like the sound of Grados in other people's rigs, but I've heard that they induce hum in tables like the Systemdek with unshielded motors. Any experience there?
Realize, the $500.00 would buy you a used Rega P3, and if you sold the Systemdek for say $275.00 you would be most of the way to the Dynavector 10X5 or Denon 103R moving coil cartridges. That said, I would forget the arm upgrade, which seems an intermediate step at best, and buy the Goldring cartridge which should mate well with the Profile. You did not mention the rest of your system, specifically your phono preamp. At any rate, if you buy just the cartridge, you will have funds left over for a record cleaning machine or more software, which is what it's all about anyway. Other cartridge suggestions around $100.00 would be the Grado Red, Ortofon OM-20, Shure M97xE and Audio Technica AT440ml, I rather like the Ortofon, but this is very much a taste issue.
My phono preamp is a Cambridge Audio 540p. The rest is a Cambridge Audio 540a integrated driving KEF Cresta 10's and a Dayton Audio subwoofer. Like I said before--mid-fi--but I get a lot of enjoyment out of it.
As far as getting a used P3 or a newer MMF or Project, I rather like the suspended design of the Systemdek. And the phono preamp won't handle low output MC's.
I dumped my rega 3/rb300 like a hot potato after hearing the systemdek w/stock arm. I also have a Sumiko arm which seemed slightly darker than the Profile. But I'd just upgrade the cartidge- hard to beat the systemdek/profile combo. Lots of other upgrades on theinternet for the systemdek. I've tried a few. Some worked for me some didn't.
Only way to upgrade from the systemdek is to spend some HUGE bucks. Have fun and good luck