After MUCH searching and deliberation..........
The Winner is- The Grant Chair from Down East Home (regular price $299)
I believe Down East is currently out of this chair in stores right now, but expecting a very big shipment soon. I was waiting for that shipment (I think it comes in May) when I found someone selling the exact chairs on KSL (a local website of classifieds). Since Down East doesn't allow returns - if you change your mind about the chair then you'd be forced to sell it yourself. They were still brand new and in perfect condition. I picked them both up for $525. Nice to get them on sale and not to have to wait until May :)
I raided my local Home Goods and Target for pillows - still deciding on the arrangement so the tags are all still attached! You should have seen the looks I was getting with my cart overflowing with at least 15 pillows (I like to have lots of options, then return what doesn't work). The table between the chairs was also a Home Goods find for $50.
Next up: A coffee table for that big bare spot in the middle!
I already found a winner on the classifieds at KSL that is currently being spray painted - stay tuned!