1. Use your government tax dollar and go to http://broadbandmap.gov/ Find out the providers serve your location there. And call them to find out which one would give you the best deal for your situation.
2. Splitter has signal loss. You may try replacing it with a splitter with signal boost/amplifier to compensate that loss.
3. Speed-wise, 3Mbps will allow you to watch video but not necessarily high quality. But almost of video providers now have adaptive video, so your video quality will be adjusted to the broadband speed rather than constant bufferring, which is what you got with low rate DSL.