Manufacturer (Giant) has a life time warranty, so it's all good. Just annoying to have to deal with it and possibly miss summer days not riding.

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Hybrids are very popular these days. They are basically road bikes with thicker tires and a mountain bike style handle bar. Personally, after getting a bike with drop handle bars (the curly ones) I wouldn't go back to straight. You have a lot more hand positions, really helps with comfort and avoiding hand pain and numbness. Tire wise, I've found my thin 700x23c slick tires pretty decent and I've never had slips or loss of tracking (even after rain) on pavement. For winter, yeah, I'd want something more "knobby".
Bike stores can be a bit overwhelming. Lots of bikes and options and it's not easy deciding which bikes "fits you" more even after a test ride. Honestly, I probably could've gotten any of the other bikes that were on display at the place I visited. It was very hard to really tell the differences. Also, the general "fit" of the bike makes a huge difference, like a proper size frame, seat height, etc. So if the store doesn't do it before each test ride, tell them to adjust at least the seat height to roughly the same between all the bikes you try.
If you do find something you like, make sure the place has it adjusted for you right there. Ride it, tell them how you feel and listen to the little noises and creaks so all that stuff gets fixed right then. Make sure to check all the gears as well.
I'm still thinking of possibly getting a single speed cyclo-cross bike at some point, but after looking around, it seems it's a bit hard to actually find a complete bike locally. I know there are a few stores downtown that carry Felt bikes, just not sure if they even have the
Felt Breed in stock. The Kona Major One is supposed to be pretty good as well (though for some reason Kona doesn't have it listen on their site anymore so maybe it's discontinued).
Kona Jake the Snake is supposed to be a good cross bike in general if you want gears. Other than that, might have to resort to building one from parts, buying used, etc.
Oh and try to find a store near you, because chances are you'll be going for a check-up pretty quickly after getting the bike. The store I got mine at offers free life time check-ups. I've used that service a few times already in the first couple of weeks getting the bike "just right".