I have a San Jose, but I rebuilt the wheels and added a Nexus 8 (red-band) to the rear.
To me it's not the hills (there are none here) but the wind. I ride my 42-19 Nexus in 5th (direct) a lot but a 10 mph headwind will drop me to 4th gear and a 10 mph tailwind will push me up to 6th.
I simply cannot ride 12 miles home against a bad wind in the wrong gear - my knees will not tolerate grinding at all.
As for the bike otherwise, I find it to be very nice indeed. Mine runs a rack, fenders, clipless and my own seat preference.