Yep, you got the idea. I don't use powerheads much, so I'm not sure on the brands, but seems they are all pretty good from what I hear. I'll let someone else comment on that more. I got a bunch of submersable filters for free with a few tanks I got, so I have just been using those as powerheads and a little extra filtration.
Yeah, there are so many pleco's out there that are much better than commons for smaller tanks, you should check out planetcatfish.com and exoticfinds.net and pick one you really like that stays smaller. I LOVE my Flash pleco, and if you check out FishGeek's post in the general forum, the Leopard Frog Pleco is pretty awesome too. They do come with a bit of a heavy price tag, but they are very much worth it!