Quality bikes get resold after being stolen. Theft is the biggest reason, IMO, why cheap bikes are important.
Comfort on a bike, on well-maintained paved road, is mostly a matter of ergonomics - measurements, essentially.
Safety on a bike is mostly a matter of maintenance and fairly basic requirements of the materials and construction. Can it stop when you want it to? Will it stop suddenly when you don't want it to? Will the frame remain the same shape for the lifetime of the bike? Are the fasteners secure? This stuff isn't expensive and doesn't need to be.
I personally would never spend more than 200 USD equivalent on a new bike as a practical form of transport. Any more than that and thinking about security starts to dominate use, creating anxiety wherever you've chained it up, etc.
Oh, and cheapest brake pads? Here are some sold in the UK, free delivery, for 3.84 USD equivalent: http://www.amazon.co.uk/dp/B002VWP0FK
Too expensive? Here are some sold from Hong Kong, free delivery again, for 1.92 USD equivalent (half the price):
http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&item=270...
I'm fairly sure you could get these for a tenth the price buying them in bulk further upstream.