Yeah, inexpensive bikes are all about compromise. In this case, aside from the standard useless 48/38/whatever boat anchor, cheap grips and saddle, and heavy wheels; the Tektro cable disk brakes are truly atrocious. However, the frame and fork are keepers for me, and thats what got my attention.
My 17 inch started out at just under 30lbs stock. Aside from swapping the grips and saddle, a CX50 crankset dropped a pound and I got some Deore hydros that I'm too lazy to install. The wheels will go as soon as something implodes on them. It does ride well, though and hides the weight rather well on the road. I think its a good urban hybrid. I've got light bikes when I want that