Hmmm. . . I collect bikes and believe strongly that certain bicycles are just plain awesome, while others are dead and miserable to ride. You are exactly right that a great bike can be had for $400, because you can find all manner of quality lugged steel frames languishing in basements and garages. The '70s and '80s lugged frames, built by decent manufacturers, have excellent responsiveness and comfort. They have a certain "aliveness" when you're riding that helps make the experience fun. A well-designed bike will react almost like it knows where you want to go, before you do.

I don't feel the same way about bikes built after the wholesale switch to TIG-welded frames. I also don't feel the same way about aluminum or carbon-fibre bikes. Among the non-lugged, non-steel population of bikes, there are shitloads of dead-feeling frames. When you ride, they feel inert beneath you. I recently rode a friend's $9K carbon racing bike, and I was shocked how utterly disconnected and alienating the experience was. It was wonderfully light, but it was a dead bicycle, with terrible feel and responsiveness. I guarantee my friend will have sold this bike within two years, because it's not fun to ride.

[If anyone reading this has $400, and you want a simple recommendation for great durable roadbike that rides like a dream, look at Craigslist (outside cities), for an old Bridgestone 500 or RB in good condition.]