Holly trees, cut 'em or keep 'em?

I'm seeing more reasons to keep them than to 86 them. Are you sure it is acidity that is killing your grass? If that area is in shade a lot, bermuda just won't grow well there. Try sodding with a shade grass like fescue or perennial rye grass. Monkey grass (aka mondo grass, liriope) does well anywhere. Azaleas like acid but not much sun. Short, low-growing variety conifers might be good there, too.