I got my special hybrid a few years ago. I have a 35km commute every friday. Lately I have been riding a bit more and thinking of joining some competitions.
Thinking of upgrading my bike to be a bit faster. My budget is $1000.
Option 1. Keep my specialized hybrid and upgrade parts on it. .
(I'm 5'11" my bike is 54.5, I felt the frame is a bit too short?)
Option 2. Try to sell my bike and get a used or new road bike/triathon bike. Please give me some suggestions on what kind of good entry level bike i can get within my budget.
Upgradeitis can be very costly, and rarely strictly "worth" it. "Replace-with-better" as wear and failures prompts a replacement anyhow is about all that can be sensibly done.
I'd recommend you keep this one as is, and spend the money on a used road bike instead. For $1000 you should be able to pick up a sweet bike, particularly if you're content with a 9-speed rear.
One possibility is to do a drop bar conversion, but there are plenty of pitfalls down that road. A net search will tell you all about it. Another option is to get some drop bar ends, and maybe a pair of v-brake compatible drop bar levers(and some in-line barrel adjusters) That'll give you a more aero position at a reasonable cost. You might want to replace your stem with a shorter one if you find that you like riding on the hoods.