You certainly do not need a splashout on the development board if you are happy just learning the language and simulating the results.
You can get the free Xilinx ISE Webpack , which includes the base version of ModelSim.
As you already mentioned, simulation and testing is one aspect of FPGA design. In fact, getting the design to work on real hardware is usually the more complex part. However, simply using the software, you can learn the language, deal with the simulation, and even synthesize your design to make sure that it meets the deadlines and fits on the target device.
I would also suggest that $ 1K for your first developer tip is high enough. I would start with something like an inexpensive Xilinx Spartan-6 board , which is a little under $ 300. To do this, you get a device with a decent amount of logic, memory and DSP fragments.
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