I think if I were to spend a bunch of money, I'd think about one of those Traeger pellet units: you get real smoke from burning wood, but it's set up to track the temperature and adjust things as needs be, so you don't have to mess with it much.
I'm thinking of getting a WSM when I've got some money, or I find one on craigslist. The only drawback I see there is that you're not actually burning wood much - maybe a few chunks over your coals.
If I had to redo the ugly cinder block thing, I think I'd try and create a separate 'firebox' where you burn the wood and it has some kind of draft that pulls the smoke through into the cooking chamber. As is, I just threw wood on one side and kept the meat on the other, and didn't let things get too hot or too cold.
Something not to skimp on: a good digital thermometer that measures both the external temp and meat temp.
If you guys like BBQ, the recent Franklin series is fun to watch, on PBS.