Wow- Figures there'd be this much variety in opinions. I appreciate all the responses so far. Obviously the bike will pay for itself within the year in Gas and extra costs associated with driving. I think my options are going to be either:
1. Find a really good deal on an older used Road Bike ~300 or less.
2. Go ahead and buy the one that I want- after some test rides at the LBS of course.
I don't really believe in getting the halfway ~800 dollar bike. That's like buying a Mustang without getting the V8. It works for some people, but I don't work that way.
I'm going to give it a few weeks - more time to convince the wife - and I like the rule of: If you want to buy something small (Less than $100) think about it for 3 days and see if you still want it. If you want to buy something big (More than $100) think about it for 3 weeks and see if you still want it.
I've still got another week before that times comes. So thanks for all your responses, there's obviously different perspectives on Finances and Priorities here. I'm still open for suggestions ofcourse.
Proverbs 12:15 - "The way of a fool is right in his own eyes, but a wise man is he who listens to counsel."