Actually, I agree that it's merely a cosmetic issue. On a lower-end Cro-Mo frame like the Nishiki, it's doubtful that it will ever fail there. That's why I'm giving the bike (dent and all) to my step-son, who weighs maybe 95 pounds. He can ride it and abuse it and I won't really care.

I'm going to build the Fuji frame as a townie single-speed bike (NOT a fixie) with northroad bars and other dorky stuff. The Fuji frame has a lot of rust on the top tube (which you can't see in my pic) around the cable housing guides. I'm just going to ride it like that as my townie bike.

If, however, I were going to use the Nishiki as I had originally intended - as a cheap randonneuring bike - I would have had serious reservations about the dent.