I haven't used the Jepp bag, but it's true Lands' End bags are practically bulletproof. I am still using the one I bought when I was pregnant with my first child, and he is nearly seven. It still looks pretty new, with some scuffs on the bottom but that's it.
My Lands' End bag is too big for daily use, however, now that I've streamlined what I need. I just use it on weekends for travel and major expeditions, such as going to church. ;) They have smaller, more updated styles of bags now and even with shipping you'd be under $40. I've always gotten my Lands' End orders in 4 days or less, and I'm also in Utah.
I used a Kecci brand messenger-style diaper bag for awhile with my second baby and it was great. The zipper finally broke after a year of near-constant use and I've neglected to repair it. It was a good bag and I got it on eBay for well under $40--that was about my budget at the time, too. It was beautiful, in an Asian brocade design, but that may not be your style.
Now, I am using my all-time favorite. It's a diaper bag from Peg Perego. I think it's called the Borsa Mamma. You could search around and find it on eBay or online for a reasonable price. It's the perfect size with exactly the right kinds of pockets and sturdy, sturdy hardware and nothing "babyish" or nerdy about it, if you know what I mean. It can be a nice shoulder bag or convert easily to a backpack, and a light-colored, easily-wiped interior so my bag doesn't become a dirty black hole. I honestly love it.
As a breastfeeding mom, I've never been interested in carrying the free hospital bag because I feel like it's just a marketing ploy for formula companies to make it seem as if their products are endorsed by the hopital, and I want hospitals to market health and nothing else and not undermine moms' confidence in their ability to feed their babies without corporate "help". . . .but not everyone has political feelings about their diaper bag, I realize! ;) Just a thought.
Your Eddie Bauer bag will probably serve you well for awhile, at least until you're tired of it and would like something new. But have a look at www.landsend.com and see if you like their medium-sized styles. I have two in diapers right now and both my Peg and my Lands' End bag are big enough to use with two children at once.
Good luck and congratulations!