I have looked the Gateway over at my local Target, and it has 700c wheels. Target calls all of their 700c equipped Schwinns 28" bikes.

The Gateway reminds me of the Schwinn Willy that one can find at a local bike shop. My favorite LBS has a Willy in stock, and the components on the Willy appear to be similar to the Gateway. The chainwheel on the Willy is a 36t, while I haven't been able to find chainwheel specs for the Gateway. The Willy is on clearance at my LBS for about $300, which is quite a bit more than the Target price for the Gateway. If I were choosing between the two, I would get the Willy, as it is available in multiple frame sizes, while the Gateway appears to be one-size-fits-all. I really need an XL frame to fit my long legs.

One thing I can say is that the Willy has a better fit and finish than the Gateway (at my local Target). This is probably a reflection on the differences in assembly techs. The Willy is ride ready, while the Target bike at my store as all out of adjustment. You do indeed get what you pay for in this case. I wouldn't hesitate to purchase another LBS Schwinn, though I wouldn't recommend purchasing one of the Schwinns I have seen at my Target.