Originally Posted by moxfyre
Internally geared hubs are quite expensive: today's equivalent of the 3-speed Sturmey-Archer would probably be the 7-speed Shimano Nexus hub, which I couldn't find for < $150. By contrast, I can get a pair of Shimano LX or Shimano 105 derailers, rear hub, and a 9-speed cassette for about $100 from Nashbar. The LX setup will have a slightly wider and more finely spaced gear range, and is quite a bit lighter. The difference *may* be due to economies of scale in large part, but I'm not sure...
I've found myself concurring with you on a lot of topics lately, but here I must differ. The Nexus 7 is certainly not today's equivalent of the Sturmey-Archer AW. That would be one of the 3-speed hubs offered by the new Sturmey production, Shimano or SRAM. And that's only a functional equivalency. Certainly, you can get a modern 3-speed hub for less than $150! Really, it's difficult to draw a comparison. Nothing like the modern Nexus 7 and 8-speed hubs existed then. Nothing exists now, at least not in the United States, with the ubiquitous presence of the Sturmey-Archer AW on bicycles from the 50's through the early 70's.
As for the benefits and. disadvantages of internal gearing vs. derailer gearing, that's a whole 'nother ball of wax. My take on it is that the technology of gear hubs is undergoing a renaissance, and improving much faster than derailer tech is currently (which frankly has nowhere to go but refinements, at this point). Even with things at their current state, I think that internal gearing is a more practical option for your average cyclist. A Nexus-8 equipped do-everything bike is on my wishlist. Alas, I am currently a slave to the derailer, except for my (admittedly hideous slow and inefficient) AW-driven winter beater.