The need to drop everything into a category is part of the reason why the LBS is so intimidating to the non-cyclist.

That said, I have no problem with City bike. You're not going to find many people cruising through the country on these -- and I think most suburbanites would say they live in the city.

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chephy, I don't believe that the people who been riding around on cheaper used bikes are the target market for manufacturers anyway. Most of these people have made their decision and few will be swayed by model design, regardless of price.

I haven't bought a new bike since the 90's, so I'm somewhat in that category as well. That said, both of the bikes I ride to work were purchased used (at a good deal) for more than the most expensive bike in this list.

If, and it's a big if, the time comes when transportational cycling becomes more mainstream, I do not believe that cost will be a problem. Compared to what people are currently spending on transportation, even the most expensive "commuter" bike is affordable.