"Now that you mentioned that those are special hubs, is it possible to change into something like this?
Also, I noticed you have some nicer pedals, Are those foldable?"
If the new rims have holes that match the Halfway hubs, I think you could replace them.
The folding pedals that came with the bikes are heavy and slippy. I replaced them with DeoreXT pedals from my Klein mtb. The Giant saddles that came with the bikes are also not up to the Halfway otherwise excelent design. I replaced it with Brooks B66 Champion. With the above modifications my Halfway is nesrly as good as my road bike.
http://www.brookssaddles.com/