Esotice,

This is my 1995 Trek 750 that I converted to drop bars:


I went with the drop bar conversion for some of the same reasons you stated. I prefer drop bars for the varied hand positions, I wanted lots of clearance for wide tires and fenders, and rack mounts. The other alternatives are cycloross or true touring bikes but they are much less common around here and sell for more than I wanted to pay for a bike I use for similar purposes to you- riding in inclement weather, towing the kid, running errands, etc. Hybrid bikes are a steal in my city.

I was able to convert the stock 7 speed hub to 8 speed using a 8 speed freehub and adjusting some axle spacers. This allowed me to use some 8 speed parts I had (chain, cassette), and I was able to use Ultegra 8 speed barend shifters. The shifting works great. I felt awkward on my initial setup also. I used the stock stem at first which was too long and low and put me too far forward which made the bike feel twitchy. The Kalloy dirt drop stem was cheap and brought the bars up and in. The bike still looks odd to me but it actually handles great and I ride it quite often. It is a great "everywhere" bike- I ride it on roads, gravel, bike paths, even some dirt singletrack.

I hope you are able to dial in the fit on your bike.