Is this a WRX? If so, you are pretty much stuck with strut inserts and springs, which will be much less than $1200. Coilovers are a minimum of about $1800 I believe. Check out Gruppe-S online for a good selection of them and awwesome prices. If you had a GM/GC car, I'd say get the Prodrive P1 setup from SPD or STi V5/6 struts with Prodrive springs.
You could also go the spring/strut route with a WRX, and have plenty of money left for a RSB, solid endlinks, steering rack bushings, strut mounts, and probably even an anti-lift kit.

 

Haha, it's funny you ask what the anti-lift kit does. All I will say for certain is that it makes your car faster on the track. Search here and NASIOC for 'Whiteline ALK' for more info on that.
I don't know if there are Konis for the '02-03, but I believe so.

 

It's not really a matter of how you drive actually. Every time you hit a bump, the stiffer springs will force the stock struts to move a little faster than they are designed too, by forcing the fluid through the tiny little valves faster than they can handle. IT just wears them out quick. The other problem is that lowering springs make the struts work in a slightyly different position than normal, kinda like having 800 pounds of crap in your car at all times. The Konis should be ok with the other springs though, especially with the adjustability.

 

the anti-lift kit is great, especially with other mods

 

It is good, but it's not legal for SCCA-rules based autocrosses, which lumps you in with guys who spend more on mods than you're whole car is worth.