BS #1 are idiots and I wouldn't go back to them under any circumstance. There's a ton of red flags in your post but the gold medal goes to "metal fatigue of the steel". I'd say this one edges out the silver medalist "I wouldn't want cromo because the ride is not good". Coming in third for the bronze would be the bikes $45 to $60 over MSRP. The gold and silver medalist above are actually 180 degree antithesis of the two primary selling points of steel: 1) Strength/durability and 2) Ride quality.
You may not want a sporty hybrid but take a look at the
Jamis Coda to serve proof that chromoly is not in itself heavy. I can pretty much guarantee you the steel bikes you asked about are not 40 lbs. The guy wants to move his aluminum suspension fork stock. Also, since you're not looking for a $5000 cutting edge carbon road bike he won't make much off the sale so his effort with you is proportional. I'm not sure how long that BS has been there but I see the symptoms of a dying business.
Go elsewhere for your business and stick to your guns.