>>2938892I think you should look at mirrorless.
They are larger than a compact, yes, but they are also much smaller than a DSLR. Plus they have DRASTICALLY better image quality.
You can use them in full auto mode and still get great pictures, but they also have room to grow with proper manual controls.
A Sony a6000 is only slightly over your budget, and is one of the best mirrorless cameras made to date. You could also look at older used bodies and save even more.