I agree with most of the others. aside from the hipster cowhorns it looks like a great randonneurer type bike. just change the bars clean it up really nice and experiment. I am no trek expert but I don't think these came with 1/2 step gearing, did they? so odds are pretty good some prior 'bikeaholic' set up the gearing for around there.
looks like you have lots of room in that frame I would consider a x28 tire for a bit softer ride.
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“One morning you wake up, the girl is gone, the bikes are gone, all that's left behind is a pair of old tires and a tube of tubular glue, all squeezed out"
Sugar "Kane" Kowalczyk