I'm not sure why you think there's no room for fenders- there is plenty. I just haven't mounted them yet because we're in the dry season in the Pacific Northwest. They will certainly be on there come October, or the concept wouldnt he very good for my purposes.
Drop bars were thrown on because that's what I had handy and I'm generally a fan of drop bars and didn't want flat. Nice thing with no brakes or cables on the handlebars is I can swap between different bars very easily.