Spaghetti and Meatballs

I'm always looking for a new spin on an old favorite. I tried making meatballs a few months ago, and it was a MAJOR fail. I was using a healthy version that used ground turkey instead of beef, and those babies fell apart the minute they hit the pan. It was a cooking disaster. So, bravely, I set out to try this recipe. It...was...delicious. Here's a picture, and the recipe follows (with my changes):
2 Tbsp. olive oil
3/4 cup chopped onion
4 cloves garlic, minced
2 (16 oz.) cans crushed tomatoes
1 (6 oz.) can tomato paste
1 (15 oz.) can tomato sauce
1 3/4 cup water
3 Tbsp. sugar
1/4 cup chopped fresh oregano (I was lazy and used jarred)
1 dried bay leaf
salt and pepper to taste
1 lb. extra-lean ground beef
1/2 cup Italian seasoned bread crumbs
1/4 cup chopped fresh parsley (again, I used dried)
2 eggs, lightly beaten
1/2 cup grated Parmesan cheese (the good stuff in the cheese section)
1 (16 oz.) package spaghetti

Heat the olive oil in a large saucepan over medium heat, and cook the onion until lightly brown. Mix in 2 cloves garlic, and cook 1 minute. Stir in crushed tomatoes, tomato paste, tomato sauce, water, sugar, 1/2 the oregano, and bay leaf. Season with salt and pepper. Bring to a boil, reduce heat to low, and simmer while preparing meatballs.

In a bowl, mix the ground beef, bread crumbs, remaining oregano, remaining garlic, parsley, eggs, and cheese. Season with salt and pepper. Roll into 1 inch balls, and drop into the sauce. Cook 40 minutes in the sauce, or until internal temperature of meatballs reaches a minimum of 160 degrees F.

Bring a large pot of lightly salted water to a boil, and stir in the spaghetti. Cook 8 to 10 minutes, until al dente, and drain. Serve the meatballs and sauce over the cooked spaghetti.