Dude. Buy the Bianchi. Looks like it's in great shape; better than the one I just bought, and I love mine. Put some road tires on, fenders, rack, maybe eventually a drop bar conversion with bar end shifters...you don't have one of those yet, right? The only downside is you keep finding bikes in excellent shape, which bike thieves also tend to notice.

Oh btw I don't know where the seller came up with that 500-1000 nonsense but the asking price doesn't seem bad to me at all given the condition. That bike is built with some good stuff.

Here's mine, replacement fork but it still has a very nice, lively ride.