I really need a new acoustic as I currently have a cheap $200 cort that's hard to play anything on because the action is so high. I love the sound of the Taylor DN3 but I'm wondering how it plays.

I'm more of an electric player so I'm kind of a novice when it comes to acoustic especially finger picking, but I want to be able to play really hard/fast stuff like Jerry Reed, Chet Atkins, Andy McKee, and basically just general virtuoso acoustic guitar stuff as well as classical music from the likes of J.S. Bach.
ESP Horizon NT-II
Schecter Jeff Loomis 7 string
Ibanez RG370DXGP2
Some cheap Cort Acoustic

Peavey Vypyr Tube 60

Line 6 Pod HD500

Yamaha YDP161 Arius Digital Piano
I've had my taylor dn3 for a week now and I love it.
Obviously, there are lots of good guitars there, and it seems that you have a large selection to choose from as a step up from what you are playing now.
There are numerous websites that offer the dn3 for 1099 if you want to chance ordering one without playing it first. I took that gamble from American Musical supply and was very pleased. My impression is that Taylor takes care in inspection and setup before shipping to dealers. I believe the same can be said of Alvarez. Most of their production line is now assembled in China, they are inspected and set up in St. Louis before shipping.
I think you would find that the taylor dn3's 1 3/4 inch nut is great for fingerpicking.
It is also an all wood guitar (sitka spruce top and sapele back and sides), but you probably know that.
If you are not ready to spring for a thousand plus guitar, you may want to think about an Alvarez in the Artist series ( solid top and laminate back and sides).
These are good intermediate guitars that can be found at very reasonable prices.
with the Taylor, you will know you have a quality instrument backed by a great company, and one that should serve you well for years to come.