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Laminate. To me, granite tile countertop looks exactly like the situation you are in: couldn't afford the real thing, so did a cheaper alternative. I'm not sure anyone in history has ever picked tiling a countertop for a reason other than price. My parents have a tile countertop in their kitchen, and keeping the grout clean is a major hassle. Wiping the counter is a pain too - crumbs/etc. stick to the grout and make it difficult to wipe the counter down.
If you go with a laminate, avoid something that is trying to look like stone - those look cheap too. You can get a good laminate countertop, that doesn't look like it's trying to be something it's not, and have it look really nice.
EDIT: one other thing - how DIY capable are you? You can get 4x8 sheets of laminate and do the whole project for WELL under the $1600 price. Brief how-to: http://www.acehardware.com/info/index.jsp?categoryId=1280476
If you go with a laminate, avoid something that is trying to look like stone - those look cheap too. You can get a good laminate countertop, that doesn't look like it's trying to be something it's not, and have it look really nice.
EDIT: one other thing - how DIY capable are you? You can get 4x8 sheets of laminate and do the whole project for WELL under the $1600 price. Brief how-to: http://www.acehardware.com/info/index.jsp?categoryId=1280476