Cheap bike are cheap, news at 11.

It gives a false sense of saving money, since the thing will break and become unusable (or unrepairable) sooner or later. While one could put in a tiny bit more (at an LBS, or the same amount online) and get something that could be relied upon.

It's not the fact that it's cheap that make buying this bike 'wrong', it's how the customers are led to believe they are buying something akin to a real bike while in reality it is nothing but. Alas, people that will be shopping at Target or Walmart have a very strong tendency to buy on a whim and not make any research before-hand. They (Target and Walmart) know that fact and will sell cheap stuff that doesn't look so cheap to profit from it.

Also, what the heck is going on with that derailleur hangers? And the stand is classy.