As someone who also loves progressive rock, at least high-quality progressive rock (
not the cheesy variety), I can relate to how you feel. And I encourage you to follow your bliss.
Based on what I can tell, you seem to have your head on straight about this. You realize that this is a labor of love, that it doesn't have to turn a profit, and that it will take time to do it right. So jump in and get it started!
A few other things: I think you'll find that, eventually, you'll
need someone for keyboards. I've rarely heard
any progressive rock band that didn't have them, King Crimson being the only exception that comes to mind. I have no doubt it will be tough to find the right player, but don't give up.
I think you should plan to gig. You may have to think
way outside the box about viable venues and situations, as you certainly can't count on your local watering hole to cut you much slack. So get creative about gigging. Get
real creative.
If I were in your shoes, I'd develop some original material to go with the cover tunes. Since you already play keyboards, that should make writing more straightforward. In my opinion, progressive rock really lends itself to original material. That's where you
really get an opportunity to shine (And "shining" is what it's all about, amirite?).
Don't overlook some of the second-generation and third-generation "neo prog" bands to cover. I agree that many of them have gone metal(ish) (i.e. Dream Theater, Opeth), and "prog metal" is certainly not my kind of thing either, but not all of them have gone that way. There are lots of very good, more recent progressive rock bands, especially if you're into symphonic prog, that could be worth your while to check out, including: The Flower Kings, Iluvatar, Happy the Man, Echolyn, etc.
Get the bass and drums
tight. Very,
very tight. Then get 'em tighter still. Bass and drums can never be too tight.
Whatever you do, make sure that it sounds
good. If you're good enough, you'll get gigs - it almost doesn't matter the genre. But quality
has to be Number One. There's nothing more tedious and amateurish than bad prog, badly performed. And at least in my opinion, there's relatively little that's more impressive than outstanding prog, performed
masterfully.
MM