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The 2M Blue is a step forward and you will hear a difference. It is debatable whether it is worth it or if you should start saving for the Comcept which is a monster step forward. I personally wouldn't be able to wait for the Concept and would be saving every nickel but that is me. If you can wait a couple years, that 2M Blue is a great cartridge and works well with ProJect tables.
I think the cartridge upgrade would be the best plan; it should make a significant improvement.
Thanks for the input guys. I think I'll go ahead and plunge for the 2M Blue. I know a couple hundred for the cartridge is small peanuts, but with an 8 month old at home it makes a difference in our household. Which is the main reason why I have to be patient for the Clearaudio Concept. With that in mind I'd rather wait until I am closer to upgrading my loudspeakers along with my TT, and then plan for an integrated amp/phono pre upgrade shortly after. My current setup, although entry level, is proficient and really nice sounding, but I do not think I'll get the full benefits of the Concept until I am able to afford better speakers and electronics.