Have you looked into the Audiomods? It is a real bargain. Otherwise, check the Helius Omega.
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I own the silver mk ii and think it is a very good tone arm. It performs way above its price and can accomidate a large variety of cartridges. I have read about issues with the silver mk ii and the denon cartridge due to its light weight. However, if you add weight to it, like Zu Audio, it should be terrific. In fact, I too am interested in the combo. I contacted OL to ask their recommendations for an upgrade. OL suggested a new OL live arm will outperform the silver (any version) by a significant margin. At $1500, yiou could get a new OL arm and a Zu Audio modded Denon...thats what I would do....
I have the OL Encounter Mk3c that was an upgrade in my system from an original OL Silver. I am presently using it on an OL table with a Benz Ebony cartridge. When I upgraded from the Silver to the Encounter I was using my Sumiko Blackbird and the performance increase was notable. Now with the Benz the sound is excellent. The ability from have easy VTA adjustment on the Encounter is a definite benefit over the Silver. I have not used the Ittok so I cannot comment on a direct comparison. The Encounter was bought on this site well within your budget.
I think matching most arms to the LP12 is very much a hit and miss biz. IMO, most of the super arms today aren't going to work on the table. Probably the best, if you can find one, is the Naim Aro. I would suspect that the OL's are going to be too heavy.
Might try a WTA like I use, works superbly with a Benz Ruby and is a much greater performer than the Ittok lvii that it replaced.
I would stick with what you have, as you refer to it as "excellent". Many people want a major upgrade, but then set an unrealistic budget for major improvements. What phono preamp are you using? I was using a Project Tube Box II and the upgrade to a used Linto ($800) was very apparent. More freedom from overload, less congestion. Much, much better, IMO.