Hey guys, thanks for all the suggestions. I actually forgot about this post and just remembered to come back here. I have tentatively chosen to go with Texas mountain laurel. The reason why my choice isn't final is the incredibly slow growth of TML. Having gardening as a hobby and also being cheap, I like to propagate all my own plants. In the case of TML, that would mean that a full 2 years from now, the thing may still be no higher than my knee. That obviously creates some aesthetic problems, but also possibly some issues with the HOA.
The bermuda came with the house, just like the live oaks. What are your objections to it specifically? I know it is not native and has fairly high maintenance requirements. The biggest positive with bermuda in my mind is also the biggest negative, and that's the aggressive spread. It's nice to never have to overseed, and if you do something like level out a low spot, you also don't have to seed the area. However, keeping the stuff out of your landscape beds is a full time job.
I'm pretty big on using native plants, conserving water, and using organic methods of amending soil and fertilization. But I guess I'm not as dogmatic about it as others. What I mean by that specifically is that if there is a compelling reason NOT to use a native plant, I am not religiously against doing so. In the area of trees and shrubs, it is easy to use native plants. Sure, there may be some non-natives that are tempting, but there are plenty of natives that do the job very well. When it comes to grass, not so much.