the shifting problems are all adjustment issues, but as a basemodel 'hopper owner, yeah, it's all just as upgradeable as anything else. I don't remember what the naked frame weighs, but you can change out pretty much everything around said frame... and 'Hoppers are pretty sturdy little bikes. Mine is mostly stock yet, but you could lighten her up significantly by getting better rims/wheels, handlebars, maybe seatpost/seat, cranks, tires, etc... Deore came on my model ('03) and it's served me pretty well... and it's still relatively pricey.



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), lighter, stiffer wheels will make a huge difference to your ride. Disc brakes would be a good upgrade too (I'm pretty sure your frame/fork will be disc-ready, but you'll need to check that) if you're looking to improve your bike's performance. You can get not too expensive disc brakes, but the lighter ones are a bit more spendy.
Stems and bars and seatpost are all good places to lose a little weight without breaking the bank (not that you can't break the bank on these items should you so choose...
).
at this price range steel will be heavy but ride quality may be better.
And even if you do with a skort you'd be fine. 
