Just for another opinion...
I really like the IDEA of steel bikes. When I bought a commuter I was sure I wanted a steel one. I tested lots of bikes in my price range and it came down to a lightweight steel cyclocross bike (Lemond Propad, before they put disc brakes on it) and an aluminum cyclocross bike (Bianchi Axis). I tried some heavier steel bikes (Bianchi Volpe, for one) too.
So, I bought the alu bike. They were about the same weight (~20-21 lbs, with pedals and knobby tires). The Lemond had a silky steel ride, nicer than old steel even. But it just wasn't as fun. Some of this might have been geometry related, but a lot of it was that aluminum is noticeably stiffer and snappier than steel, even good quality steel, and this really makes the bike feel faster, even when the weights are the same. (Of course, just as there are different grades of steel there are also different grades of aluminum, and I rode one cheapy alu bike that felt like a tank...). The heavy steel bikes are, well, heavy. However nice steel feels doesn't make up for an extra five pounds, for me.
I just bought a carbon road bike. But if I were looking to buy a less expensive road bike that I was going to spend a LOT of time on (not just an errand bike), I'm almost certain I'd choose alu over steel again. It is a more jarring ride, and lots of people hate that, but for me the stiffness makes up for it.
I totally get why people love steel, it is a very smooth ride, and I wouldn't knock them for it any more than I'd knock people who like vanilla instead of chocolate. But all in all, I think if I were just buying one bike and wanted maximum bang for my buck (and my budget didn't allow carbon or ti) I would pick aluminum over steel.
There, I've said it, let the stoning begin.
That said, I've never ridden ti, but I think ti bikes are gorgeous aesthetically, and I have a feeling I might like the ride too. Hmmm....



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