Thanks for the honest review. I had a feeling as much as I liked the look and feel of it I think it would have come up short. The size and fit look good as I ride a M/17.5 but as I read your review I get the feeling by the time I upgraded a few components I would have spent as much as a DS3 and far more than a DS2 and not been as happy. While the look goes a long way the quality and feel need to be there as well.
My gut tells me I wouldn't be happy spending $550 plus a few upgrades. If it was closer to $300-$350 it might make a fun 2nd bike.
So I think I'll just put a little extra aside and go for the DS3. I'd rather have more than I need than be left wanting.