Thanks for all your comments and suggestions! I found one more variable I forgot to take into account: Barista Incompitance
After poking around yesterday, I looked at the "Espresso Machines 101" and "Espresso Machines 201" ... and found a huge mistake. I'd been assuming the steam switch just enabled the steam... the manual just said to flip it on to enable steaming and I thought it was ok to leave it there. Dumb mistake! After learning about how my machine actually works, I see the problem: The water was over pressure and overly hot. oooops! No wonder it was hot, thin, bitter, and blonding out too fast.
This morning I changed my routine, leaving that steam switch off, using the trader joe coffee (haven't aquired any other yet), and heading for the turkish grind area on the Breville as suggested. Much better! The first pull was definitely sink worthy, however with a tweak on the grind, the second was much better. Much, much better. The crema even hung around while I steamed the milk. And the puck was hard and firm, requiring an aggressive beat down on the knock box to release (good anger management, if you ask me

) I think there's promise. Better beans seems to be the next step.
In other news, I may have a bonus coming which means one thing and one thing only: Upgrade! I think i can produce some decent espresso, but I want better. I used to be a "milk & sugar with a little coffee" drinker, but as of late i've been drinking black. And all the descriptions of good espresso have me curious. Plus the steam wand on the DeLonghi is a PITA to clean (have to steam a couple pitchers of clean water or milk froth dries out inside). Right now I'm looking at the Silvia/Rocky combination offer at Chris' Coffee Service.