Elk,
First of all, wow, that Trek Pure is soooo cute!!!
I guess my question is, is there any way you could possible justify to yourself and/or your husband keeping BOTH bikes?
It sounds like you looove the pure, and that will keep you loving cycling, which is a good thing. And depending on how fast your dogs trot, it might be fine for trotting on bike paths (and will definitely be great for errands and after-dinner spins around the neighborhood, etc). It looks like a bike you could keep and enjoy for a very long time.
You may find over time that you really do want to ride longer, faster, on more varied terrain, though, and the Pure is probably not the right bike for that. It may be that the other bike is not your best bet for that purpose either... I think it's likely that you might be able to make it much more comfortable with fitting and a different saddle, but it might be not only not the optimal geometry for your body, but also not the best geometry if what you really want to do is ride long or fast. If you REALLY think you might want a bike for this purpose, and if you haven't already, you might consider testing some road bikes, touring bikes or cyclocross bikes (this might actually be a really good option -- they give you a lot of options in terms of different kinds of set-ups -- wider tires, fenders, maybe racks, wider gearing, etc, and they usually have much more relaxed feel than road bikes).
So maybe I should stop right here, but I think if there's any way you can justify more than one bike, THENNNN, you need to keep the Pure, definitely, and then you should look at ALL of your other options. Test ride everything. .. see what you like, and think about what you might want in the future...