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If you want to spend $125/person including tax and tip, Eleven Madison Park will be far, far too expensive. If you were considering Babbo, I think Convivio is the best alternative (IMO, it's even better). They don't have a tasting menu, but for $62 you get to choose 4 courses from their menu and you'll be able to get some wine and remain within your budget.
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re: gutsofsteel
I think Convivio is a more appropriate alternative to Babbo; they're both Italian with great pastas and similar prices. A four course, choose anything off the entire menu prix fixe for $62 at Convivio isn't comparable to a three course prix fixe with far fewer choices (with several carrying hefty supplemental charges) for $88 at EMP. For a more upscale meal, sure, EMP easily wins out. But with wine, even EMP's $88 prix fixe can easily be over $125/person after tax and tip. The main issue with Convivio is that it doesn't have a tasting menu, but I can't think of any Italian restaurants of Babbo's caliber or better that actually have good tasting menus in the $60-75 range.
And there are a few restaurants that I consider above EMP ("in different leagues" as you say), but I see no need to mention them when they're in an even higher price range.
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Not sure if you can get a reservation at Daniel or Bouley but they both have great tasting menus. Plus, according to news reports, Bouley is going broke so he could use the support!
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Eleven Madison Park's "taste of winter" tasting menu is 125 per person. you can make reservations now
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