So why horizontal dropouts for a 3-speed project? I checked out Peter White Cycles for more info on the generator lights and like the fork mounted lighting options.
I would love to get a true 3 speed, but I already have a hub sitting here to be used (Thanks, Aaron). If I do decide to go the 2nd bike option, that leaves my Bianchi as a utility bike. Would love the redundancy of having two bikes that can swap tubes and tires if I get a worthy 700c candidate.