That's the exact set-up I used to run, SWR-1242D and the M650. I liked it a lot, to say the least, but I 've moved up since.
For your dimming issues, I would definitely do the Big-3 upgrade w/ 1/0ga wire before anything else. Next up would be a battery upgrade. I really doubt you'd need a H/O alt: I was running the set-up in my 08 Altima w/ a 115A alt and stock batt without any issues. What battery do you have right now?