Even without it released, I think you'll find the Fuji system to be superior, more mature, with more lenses that actually matter and it's affordable in the range you're looking at. Canon is way behind the mirrorless game. Way behind. Even with the M5 release, they're still only matching up to what was already done by Sony & Fuji a while ago. So by the time it releases, Sony & Fuji will be several release cycles ahead and you'll be in the same boat as you experienced with the M1, only with an even harder to sell camera. The market for mirrorless is a lot more generous for Sony & Fuji right now.
Fuji + 18mm F2, 23mm F1.4 or 23mm F2, etc. Fuji has fast F2.8 zooms if you think she needs a zoom range.
Sony also has good mirrorless options and good zoom selections on the wide side.
Neither system is good for telephoto really, but that's a given and it makes it a "big" system anyways. So depends if you two value compact nature of mirrorless systems and smaller lenses (like pancakes and the like; not big constant aperture zooms).
KEH.com has 15% off used digital gear right now until 9/29 at 11:59pm, with code: IDEAL. You can get a body like the X100, X-T10, X-T1, etc, for about $500 or so, or less, with the discount, to have a nice small mirrorless APS-C with great performance, leaving you $500 for lenses. The 18mm F2 XF or 23mm F2 XF are awesome for a low light general pancake that is fast and sharp. And you can explore a 16-50 variable zoom for the outdoor stuff and travel/vacation stuff, if you feel the need for longer focal lengths and not a little bag of sweet fast primes.
That's up to your preferences. The really great lenses are not cheap, but they are unique and Canon will never have them for their mirrorless line (the 22 F2 from Canon is the only lens that even begins to pique my interests and I have the EOS-M and 22 F2 as well, and nothing more for it). Fuji has these really great little primes, like the 18 f2, 23 F1.4, 56 1.2, etc. They're costly, but they're not something you can get with Canon for a system like this, this small, in this price range really.
Take a look! You could get the XT1, 16-50 and an 23mm f2 for your asking price of $1k or so if you shop around.
For me, I would love to have an XT1 & 23mm F1.4, and nothing else. That little combination to me is magic. If I were moving into a mirrorless system, that's what I'd want.