For me, inexpensive new bikes are ok for casual use, maybe a slow family ride, an occasional trip to the store to pickup some small items or a trip to the local park. For a full on commute, entry level bikes with original components just don't cut it in my book, and neither does an uber light racing bike. Too cheap of a component, and it doesn't last, causing it to be replaced more often, and making it cost as much as a more expensive component in the long run.

To get a certain type of bike, one may need to add/upgrade a considerable number of components, since bike manufacturers may not offer the bike frame/component combination one may want, which is usually how it is in the case of my commuter bikes.