You can find 3 pieces in that price range if you shop in NC. I am currently looking to buy a sofa, loveseat and 2 chairs for $5,000. I spoke to a salesperson in NC and they said that it would be no problem. I would check out Rose furniture or Boyles in NC. They should be able to tell you what manufacturers have the style you're looking for in your price range. $3500 is do-able.

Down here in SC, I have paid $150 for an ottoman and $200-250/piece for arm chairs with skirting. Like you, I have brought in my own fabrics that I bought at discount stores or sales (love those!), which has saved me a bundle as the fabrics at the upholsterer's workroom are extremely expensive. Even if the prices went up $100 per piece to recover, I think it would be worth it (at least to me-as I have no DIY skills what-so-ever when it comes to working with fabrics). Definitely shop around for upholsterers. I ended up working (numerous times) with an upholsterer that I thought I could never afford because of the location (right in front of two upscale resort islands). They ended up being cheaper because they have a TON of business, are known for their solid work, but also let you know that you won't get your pieces back next week. You have to be flexible with when your things can be delivered, which was fine by me.

I googled "tufted chairs and ottomans" and quite a bit showed up. Here's Horchow's for starters, not quite like yours, but similar: Here is a link that might be useful: Horchow's

I just finished decorating a client's house and she requested a chair and a half for her "reading nook". I personally had never looked for a chair and a half, but the good quality definitely starts in the $2400 range, after looking at the various furniture stores around here. I think you need to watch out for the back pillow seat rest in the above pic to look crumbled and disheveled after awhile. I ended up getting my client a regular stuffed/tailored chair and ottoman for her area for the $2400 instead. I thought it would be more comfortable for her, and also in her situation, the room was too small for the chair and a half.