Well, it's good you're looking for a better alternative to what came with your blaster, but realistically, I don't think $200.00 will get you too far.
I spent my first ten years out of high school in a body shop, and in the very late 89's, also spent a few months working for a contractor sanblasting/painting at the Pulp Mill outside the town I grew up in.
In the bodyshop, we had a 15HP V4 Devilbiss compressor which supplied shop air for all the air tools used by the bodymen, air for blasting, and for spraying in the paintbooth.
BUT the air used to supply the painters mask came from a small teflon piston compressor (as stipulated by OSHA), and also had a filter unit attached to it. The air coming from that big Devilbiss compressor is not suitable for breathing, unless it is run through a HUGE filter like this......
http://www.manusabrasive.com/bullard-breathing-filters/
When we were sandblasting in the Pulp Mill, air supply came from "Mill Air", good enough to blast with, but again not good enough to breathe, and the type of filter shown above is what we used, hard to get any sense of scale from a pic, but the filter we used in the Pulp Mill was roughly 5 to 6" in diameter, and about 30 to 36" tall.
For a hobbyist, although it still won't be cheap, the best bet is probably a small teflon piston compressor and an air fed mask, such as would be used for painting. This would get you clean air when blasting, and could also be used while spraying to cover up all that freshly blasted steel.
I'm not sure who sells all the gear down your way, but the Co I linked to is based right here in Edmonton, and sells through branches all over Canada.
http://www.manusabrasive.com/
Mfg division of Manus
http://www.modublast.com/index.html