Jodi, I have a Townie 21 700c and am extremely happy with it. The 700c wheels roll very nicely and since I ride on the street or paved bike paths pretty much all of the time, they work for me. I've had the bike since the first of January, and have not found anything I don't like about it. I will probably upgrade the wheels and gearing at some point when I know more about this sort of thing. The 8 speed would probably have been fine for me, because I am only using the middle 7 gears on my bike now. But, I have also heard that the internal hubs are more expensive to fix if something goes wrong.
Good luck in your hunt.