Currently we have track lighting in the kitchen. we are looking to update,
But to change out the heads would be a couple hundred and I want to avoid
Halogen, so my choices are few. is recessed a better choice? is track lighting
Outdated. These would need to work with a dimmer switch. ideas, please....

I'd go with recessed.
Simple to install, sleaker look, lot's of options on how to trim it out with differant trim rings.

I use a carbide grit hole saw made just for this to install them and use remodeling cans not new constrution so you do not even have to go in the attic unless your adding more lights.
A whole box of 6, is less then $60.00 plus the cost of trim rings.

i go with cans!! all the way , I did some of my house track and some cans cause of money, but i wish now it was all cans. it such better look. check it out here
http://www.youtube.com/watch?v...G26bcf7cALT5UuEgAAAA

We recently had a home energy audit and our "cans" were identified as significant sites of air leakage. It was recommended that we use converter kits to change them to LED's. The LED's would be much more expensive at first, but the seal provided by the kit, along with the energy savings associated with the LED's, "should" be a good long-term investment.

I bet if you look into it there the wrong cans.
Depending on there location if there's an unconditioned area above them they should have been IC, air tite with insulation over them.
LED's will have nothing to do with heat or cooling lose.

It's very likely that the installed cans were wrong. The adapter to LED kits contain a new collar that seals against the ceiling better and the LEDs sit in a more air-tight holder, so they will help prevent air infiltration.

All we ever buy are rated IC so that then becomes a non-issue. And the cost is not a problem either.