This was my thought as well. Since fuel prices are higher than ever, more people are looking for other modes of transportation. What Trek seems to have done is take their entry level specs and weigh them vs the predicted price increases. The result is what Trek believes to be the optimal value of bicycle for the entry level rider. Not everyone will ride hundreds of miles per week, so their components do not need to be of the value you may need. This also allows Trek to move as much product as possible while still retaining profitability.

Guess we'll see if their predictions are correct...