If it were me, I would go ahead and fix up/overhaul the H400 and ride it around a while before I decided to spend $2000+ on a new bike. As has been mentioned multiple times on this thread, the H400 has a very nice, high-quality, unusual frame that you would be hard-pressed to beat in any hybrid or touring configuration. I have been riding this bike for 25 problem-free years. I'm mosly a roadie, but ride the Canonndale at least 1x per week to ride into town for coffee, or go on a weekend ride with my wife who also has an H300 in the "killer v" frame confiduration. I also put new "v-brakes" on both of the H300's, but have retained the original Grip Shift shifters, as they have worked flawlessly all these years with just regular adjustments and maintenance. I also put Shimano Ultegra 600 threaded headsets on both of our H300's, which is probably overkill, but those will likely be the last headsets those bikes will ever need. One thing that is standard that you will want to replace is the steel handlebar (heavy) for a decent aluminium version.
I think you have a nice frame that you can hang decent components on for not a lot of cash.