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I agree regards mtn bike - I'm not into that (too old) but if you buy a cheap one and ride hard it's not going to hold up - my son found that out with a cheaper one - but I just remembered when he worked in Boulder last summer he did pick up a Specialized Stump Jumper FSR for $200 from a gal he worked with that rode it for 2 yrs - she picked up professional sponsorship so gets high end bikes for free.
Now I look at road bikes a bit differently - sure an expensive one is really nice but I put many thousands of miles on a aluminum frame Viscount Aersospace I bought new in the 70s for under $ 200 . I did a lot of riding back in the day in the Colorado Mtns - including a 403 mile Ride the Rockies with that bike and kept up with a lot of dudes riding high end rigs.
Now I a ride a cheaper Fuji Absolute - aluminum frame - had to put better rear wheel on it and replace various components but I ride it a lot and still do a good number of 100+ miles rides each summer.
As some one mentioned the mass popularity of bikes has made it possible to buy a decent road bike certainly for under $1000 - but it all depends on your definition of decent.
In the link to the movie I posted below about biking in Peru - those guys all rode Yetis I think as they were a sponsor. Yeti is out of Boulder and I think makes some higher end bikes.
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