I see two issues here, whether that particular bike is a good choice and whether a vintage steel bike can be a good commuter with no special issues. You really need to post that bike in C&V. I'm not an expert on Peugeot's later years but here is what I see.

That bike is a strange mixture of much newer frame and older components. The better approach would be just the reverse, derailleurs upgraded to Suntour (a great period-correct upgrade, still hard to beat), alloy rims, and alloy crank. It looks like someone may have bent the frame of an older Peugeot, founde a new frame, and tried to save money by moving all the older components over to it. If it were my choice I wouldn't go there.

Here is my own UO-8 from a commute a few weeks ago:


Vintage steel has no special requirements. A good frame with the right selection of components and tires can be a great commuter.