Is Melodyne the Best Means of Audio-2-MIDI Conversion?

Just select and drag the audio you want to convert to a midi or instrument track....

You're right, I didn't read your equipment list close enough, I assumed you had X3 Producer, sorry about that...
 
 
 
 

Depends what you want it for.  I've just been playing around with Jam Origin MIDI guitar for realtime Guitar-MIDI control, and am very impressed.
 
For everything else, I think Melodyne is very good indeed.  Sometimes tweaking the audio in Melodyne first helps, othertimes tweaking the MIDI in the PRV afterwards is the way to go.

It has been a while since I have played with this specifically, but dragging an audio clip onto a MIDI track will do a nice conversion. It has only caught note on/off data, but this would work fine for drums (no pitch/mod wheel data).
 
IIRC, you may have to transpose MIDI notes, as they may not hit the correct note for drum maps. The ARA conversion has always done note pitch in that conversion for me, so the notes may need some transposition done afterwards to hit the correct drum trigger. This is something to always check, as you cannot blindly throw an audio-to-MIDI conversion into any MIDI track haphazardly. There may be a better way to do this, but I am not familiar with how to do it.