don't discount 1990s MTBs, they made decent rigid models into the mid and even late 1990s though by the late 90s they became low end. Still in 1995 you could get a full rigid model with LX components that had fender and rack braze-ons. Keep an open mind. I think mountain bikes are the best way to go.. .inexpensive and very reliable and generally the components are just as good.

If you're going the MTB route, don't get hung up on shifters. You're likely going to need a new chain and cassette anyway and you can get some adapters from velo orange and mount up a friction shifter or order some 8 speed bar cons and mount those on the velo orange adapter (essentially the same as the paul adapter). This is a great way to go.

Lastly, a 26" wheels LHT is just an 1980s MTB frame. I say this because of the geometry. Take a look at how long the top tubes are on these suckers. It is outrageous. Personally I am not a fan of the LHT because of how poorly they fit in my opinion.. if you have to use a 50mm stem and 80mm of spacers that is a poorly fitting frame IMO.