Argyle King
Legend
Another low-cost alternative is Paizo's foldable flip-mats. They fold up into a handy 8x11-ish square but open up into a roughly 3x4 page battlemat.
Does Paizo make them with hex graphs?
What I've been doing is just using a cheap dry erase board from WalMart and not using the grid at all. Instead, I just have movement measured out using a similarly cheap clear plastic ruler (also from WalMart.) 1" is still the standard regardless of whether you use the grid or not. If you're worried about minis getting bumped, get one of the magnetic dry erase boards and then glue magnets to the bases of your minis.
I think I paid around $25 for what I consider to be a fairly large dry erase board. The plastic rulers were 75 cents a piece, so I bought a few to pass around the table.
This method does require a little more work when figuring out the radius of spells and things of that nature, but, after doing it for a while, you start to be able to eyeball things like that. Still, for ease of reference (and because I had nothing else to do at the time thanks to insomnia) I measured and cut out of construction paper a few templates for common spell and power shapes.