I have an 05 SV650S and love it. City riding it can't be beat, light to light I can keep up with liter bikes, and you can't beat the sound of a V twin!
They are a little light on the top end, but how often do you need to go over 130 mph?
As for price, yeah, definatly a bit steep. I picked mine up as a holdover demo, 1700 miles, and it was $4800 out the door, with a warranty.