Yes, you will see a major difference with a new printer. For two years I was using an Epson 600, and this was excellent, I thought it would take some beating.
Approximately six weeks ago I purchased a HP 7350, and was amazed at the difference both in quality and speed. Printers have moved on quite a bit this last 12-18 months.
If you are looking for true photo. quality, then there are several printers in the £250-00 to £300-00 price range for you to look at, and I will even go as far as saying, *You can achieve better quality prints yourself*, than any that are produced by the in-house photo. developing/printing firms.
This does not of course apply to high quality negative film used in a large format camera, and developed by a specialist company.